Indonesia Finance Minister May Propose 10 - 15 Pct Power Tariff Hike

Finance Minister Agus Martowardojo/KOMPAS/RIZA FATHONI
JAKARTA  - Indonesia Finance Minister Agus Martowardojo said Thursday it may soon propose an electricity tariff hike of between 10% and 15% as part of the country's efforts to lower its subsidy bill.

If approved, the hike will be implemented in 2012. Indonesia has managed to trim its electricity subsidy to IDR41 trillion this year from IDR55.1 trillion in 2010 and is keen to bring the amount down even further.

“We may soon propose an increase of 10% to 15% in the electricity tariff next year,“ Martowardojo told reporters after a Cabinet meeting.

The finance minister put forward a similar proposal last year but it was rejected by parliament. The electricity tariff is among several items where prices are still administered by the government and where any changes require parliamentary approval./Dow Jones

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