"People are still facing tough economic situations. FPKS maintains the stand it took during the deliberation of the 2017 draft state budget," FPKS Chairman Jazuli Juwaini said here Thursday.
FPKS is of the view that various economic and prosperity indicators showed that people were still facing economic difficulties, high unemployment rate and low purchasing power, he affirmed.
Considering the reality in the society, it was not wise for the government to increase the burden on the people by raising the electricity rate and fuel prices, Juwaini maintained.
FPKS has asked the president to either cancel or postpone the hike in electricity rate and fuel prices, as such a move would aggravate peoples sufferings, he stated.
The government, through its state-owned electricity company PLN, has gradually increased the electricity rate for the 900 volt ampere (VA) category from January 1, 2017.
The hike has been implemented by the government solely to provide electricity subsidy to eligible customers, PLN Head of Corporate Communication Unit I Made Sureteka stated in Jakarta Tuesday.
Hence, the power rate hike will be imposed only on economically able customers, following a decision to revoke the subsidy for 18.85 million economically able customers in this category.
"Effective January 1, 2017, the electricity rate hike will be imposed gradually on the 900-VA, economically able household customers," he remarked.
The 900-VA, economically able customers had earlier enjoyed subsidized electricity tariff, but their subsidy will be lifted gradually.
The revocation of the subsidized electricity rate will be implemented through gradual power tariff hikes, beginning January 1, 2017; March 1, 2017; and May 1, 2017.
Based on the situation, the 900 VA rate will increase from Rp605 to Rp971 per kilowatt-hour (kWh) on January 1, 2017; Rp1,034 per kWh on March 1, 2017; and Rp1,352 per kWh on May 1, 2017.
Starting July 1, 2017, the 900-VA, economically able customers will be subject to automatic monthly rate adjustments, similar to those belonging to the 12 non-subsidized tariff categories for customers.
Hence, on July 1, 2017, there will be 13 non-subsidized rate categories for customers.
The monthly rate of the 12 categories on January 1, 2017, is Rp1,467.28 per kWh.
The economically able 900-VA customers will also become a new customer category, thereby raising the total number of PLNs customer categories from 37 to 38.
The rates for the 12 non-subsidized customer categories in January 2017 had gone down when compared to the rates in December 2016, Sureteka explained.
"The average decline is about Rp6 per kWh," he pointed out.
The rate for the low voltage electricity had gone down to Rp1,467.28 per kWh; medium voltage, Rp1,114.74 per kWh; high voltage, Rp996.74 per kWh; and special service, Rp1,644.52 per kWh, he noted.
The electricity tariff declined in January 2017, in line with a drop in the Indonesian crude price (ICP).
This happened despite the weakening of the rupiah, and the increase in the inflation rate, Sureteka revealed.
In November, the ICP went down by US$3.39 to $43.25 from $46.64 per barrel in October 2016.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2017
