Thursday, June 17, 2010

Electricity Hike

On Tuesday, the House of Representative (DPR) has approved the plan of state owned electricity company PLN to hike electricity rate by up to 18% starting 1 July 2010.

According to the Minister of Minings and Energy Darwin Saleh, PLN would not free 31 million households using less than 450 VA from paying electricity, as earlier proposed by its Director, but will exempt them and others using between 450 VA and 900 VA from the hike.

Around 5,9 million other households will pay up to 18% more, commercial customers between 12 to 18% more, industry 6 to 15% more and government offices 15 to 18% more.

The plan received various reactions from inside and outside of the DPR. The member of the ruling coalition Justice Welfare Party (PKS) and opposition Indonesian Democratic Party in Struggle (PDIP) rejected, while the Indonesian Consumers Association (YLKI) agreed.

However, what really bothers me is that the news media do not seem to be very interested in this electricity hike, which can be seen from the fact that the number of news reports/articles about this is lower than reports/ articles about the Sex Video Scandal.

This is very sad, considering that the hike would surely effect the economy and the life of the people which are currently not in good condition.

Related media reports :
- Poorest Indonesians Spared Pain from Power Price Hike
- Govt not likely to support Free Electricity for the Poor.

17 comments:

CherylT said...

This is a very upsetting occurrence around the globe and has affected us here in the states as well.

One of the solutions is to allow competition in the field of energy and let people decide who they want to use to provide these services. That way, government sanctioned companies do not have a monopoly on price levels. Of course, a start-up may not provide the same level of service -- at first -- but over time, the situation has a better chance of becoming more competitive.

H. Nizam said...

Hi Cheryl,
Public electricity supply is still under the monopoly of PLN which has always been reported suffering big financial losses for many years. Agree that one of the solution would be to allow business competition i.e let private entrepreneur participate in the business.

Cygnus said...

that's the situation our country, people are more interested to celebrity gossip
that's just my opinion only

H. Nizam said...

Cygnus,
Yes that a very unfortunate fact. People should pay more attention to things that effect themselves.

Kiwi Riverman's Blogesphere said...

Thats a huge hike, Harry. We have our own electricity increases coming here in NZ - GST(goods and services tax)up 2.5% and the EMS(Emissions Trading Scheme) will both contribute to our increases.


peter

H. Nizam said...

Peter,
It is a huge increase, especially when unemployment rate and poverty is still high.

umihoney said...

The increase in utilities will always consequently increases the price of consumer goods.This is the domino effect.Im surprised the consumer association has agreed to this hike. There must be a serious effort to look for cheaper energy source.

Ferdinand said...

it seems all government policy is still quite debatable, especially about this electricityf

colson said...

How right you are. It's mind boggling: a media hype for a insignificant, or rather non-issue and hardly any concern about a major social and economic.

It is difficult to explain to any consumer: while the supply and distribution of electricity is below any standard, the cost of electricity goes up by almost 1/5. Jeez.

Yari NK said...

The president (of the Republic of Indonesia) delivered a speech yesterday afternoon. He implied that the increase of the commodity prices SHOULD not increase more than 4% due to the power rate hike, so he's so sure that the poors will not be burdened by the hike. But the question is that who can guarantee that the prices will not increase more than the figure he implied?? Can he???

H. Nizam said...

@Umihoney,
I am sure the news media knew that an electricity hike would surely effect the economy: household, industry, commerce. But their minds are too focused on things which are far less important but can safely provide the with lot's of attention and money.

@Ferdinand,
The DPR has given their approval so it would be effective on 1 july

@Colson,
Focusing on sex scandal would provide the media with : public attention without risk. If they focus on electricity hike they risk to be protested by the govt.
I hope bloggers would be more care about issues important for the society.

H. Nizam said...

Hi Yari,
How can the prez be so sure?
The hike would give businesses and workers reasons to increase selling price.
Four per cent? does it mean that if current price of teh botol is
Rp 1000 after 1 July = Rp 1040.
Based on experience, the price would sooner or later be rounded up to Rp 1100.

Edwin's Personal Blog said...

people get to heart-racing everytime awaiting the fare hike. It bites but it happens. Gotta get ready with all consequences..

Blog Ekspor Impor said...

With this hike, changes in social life style are inevitably imminent. This goes without saying..

H. Nizam said...

@Edwin,
Yes common people would have to be ready to face consequences of govt policies.

@Blog Ekspor Impor,
Common people would be effected, while the rich would not.

King said...

hi! wondering if you want to exchange blogroll links?
if yeah, leave me a comment on any blog post at:
http://www.keepons.com/
i'll link to you first then when you have time, link back k?

H. Nizam said...

King,
Thank you for your visit and offer. I'll go and check your blog.