Seven of ten factions in the House agreed on the margin at Rp15.74 trillion or 7 percent of the production cost which is projected to reach Rp224.79 trillion.
Jakarta (ANTARA News) - The House of Representatives (DPR) has approved the government`s proposal to set state electricity firm PT PLN`s business margin at 7 percent of its production cost this year.

Seven of ten factions in the House agreed on the margin at Rp15.74 trillion or 7 percent of the production cost which is projected to reach Rp224.79 trillion, House Commission VII Chairman Sutan Bhatoegana said at a working meeting with Energy and Mineral Resources Minister Jero Wacik here on Tuesday to discuss electricity subsidy in the revised 2013 state budget.

The seven factions are the Democratic Party, the Golkar Party, the Indonesian Democratic Party of Struggle (PDIP), the Nation`s Awakening Party (PKB), the United Development Party (PPP) and the Greater Indonesia Movement (Gerindra) Party, while the three factions are the National Mandate Party ({PAN), the Prosperous Justice Party (PKS) and the People`s Conscience Party (Hanura).

"As such, the government`s proposal to set PLN`s margin at 7 percent can be approved with a number of reserves," he said.

Under the 2013 state budget, the business margin is set at Rp14.84 trillion or 7 percent of the production cost projected to reach Rp212.07 trillion.

PAN spokesman Alimin Abdullah said PLN should no longer rely on subsidy. "Like a baby, PLN should not be breastfed any longer," he said.

PLN must use fuel oils as efficiently as possible and speed up the completion of power plant projects, he said.

Hanura spokesman Ali Kastela meanwhile asked PLN to further raise its electrification ratio, "We are deeply concerned about the electrification ratio in Papua which is below 40 percent," he said.

Jero Wacik said the 7 percent margin is a minimum figure.

"We have consulted Finance Minister Chatib Basri and both of us have come to the conclusion that the 7 percent margin is a minimum figure," he said. (*)

Editor: Heru Purwanto
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