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JAKARTA - Trade Minister Muhammad Lutfi stated that Indonesia still needed additional 100 thousand MW electricity to support industrial development at home.
"We need 100 thousand MW electricity, as the present power capacity is not adequate to turn the Indonesian people into an industrial society," Minister Lutfi said after attending a discussion on the reflection of Three-Year Governments Master Plan for Acceleration and Expansion of Indonesias Economic Development program here on Thursday.
Minister Lutfi affirmed that the availability of electricity is very important for increasing production of the Indonesian industrial sector. "Industrial production can be possible if electricity is available. In Ambon (Maluku Province), we can establish up- and downstream fishery industry, in Kalimantan metal industry, and in Sulawesi petrochemical industry," the minister explained.
He noted that the government should have the commitment that electricity is very important, and generation of geothermal electricity is very prospective because Indonesia holds 40 percent of the worlds geothermal potential. In the meantime, the government announced on Tuesday that currently no plans have been made to increase electricity tariff in 2015.
"No plans have been made yet. Beginning from next January, we will apply the adjustment on six customer groups whose tariff will be increased this year," Energy and Mineral Resources Ministry Spokesman Jarman said on Wednesday. The government will propose to the House of Representatives to levy electricity tariff with automatic adjustment on 11 customer groups.
According to the Energy and Mineral Resources ministers Decree No. 9 year on 2014, the government has applied automatic electrical price adjustment to four non-subsidized customer groups on May 1, 2014.
The four groups are large capacity household users (R3), with over 6,600 VA power; medium-sized business users (B2), 6600-200,000 VA; large-scaled business users (B3), above 200 kVA; and government offices (P1), 6600-200,000 VA.
Jarman explained that the electricity tariff adjustment will be set every month with reference to exchange rate, oil price, and inflation. Non-subsidized electricity customers are no longer subsidized when the exchange rate and oil prices rise. "On the contrary, customers can have a tariff reduction if the exchange rate and oil prices are lower," he said.
Jarman added that with the implementation of tariff adjustments, beginning January 2015, government will only provide subsidies for customers with 450 and 900 kVA electricity capacity, and also for the society, small businesses, and small industries.
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