Electricy Tariffs Hiked in Indonesia as of July 1

Jakarta (News Today) - The Indonesian government will hike electricity tariffs by an average of 10% from July 1, the Minister for Energy and Mineral Resources said Monday.

“The 10% increase is definite,“ Darwin Saleh told reporters. The government will discuss further details, such as the magnitude of the increase for each consumer segment, with parliament.

Any hike in tariffs will add to inflationary pressure, but the impact is likely to be minimal as the government probably won't raise tariffs for low-income consumers, according to analysts. Bank Indonesia has said it is optimistic that inflation this year will stay within its 4%-6% target range despite the planned tariff increases.

Standard Chartered Bank economist Eric Sugandi estimates the tariff hike will add 0.24 percentage point to inflation this year. The bank had predicted inflation to come in at 5% for the entire year, factoring in possible increases in electricity tariffs and prices of subsidized fuels.

Source : kompas.com

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