Head of the Commercial Division of Perusahaan Listrik Negara (PLN) Benny Marbun has denied that his company failed to implement the third economic policy package issued by the government last year. One of these packages requires that PLN cuts industry electricity tariffs by 30 percent at night.
Benny Marbun claimed that PLN had implemented all policies in the policy package, particularly those related to electricity incentives, since December 2015. "PLN always complies with policy decisions," Benny said to Katadata, in Jakarta, Wednesday (4/5). (Read: PLN to Withdraw Subsidies from 18 Million Customers).
Benny said that many industries have benefitted from this incentive and their number will increase once the data collection process is complete. He said that 667 industries enjoy this incentive: 60 in Banten, 138 in Central Java and Yogyakarta, 31 in Jakarta, one in Sulawesi, 5 consumers in Bali, 201 in West Java, 16 in North Sumatra, and 215 in East Java. To benefit from the incentive, customers only need to submit a request to PLN.
This incentive was included in the third economic policy package, in which the government ordered PLN to offer incentives to industry, especially small and medium businesses, to help them grow. PLN responded by offering two incentives: a 30% discount for additional usage from 11 p.m. to 8 a.m., and a grace period of six to ten months on payment for 40 percent of billed use. (See also: Small Businesses and Industries to Get Discounted Electricity Tariff)
After a coordination meeting on Tuesday, Coordinating Minister for Economic Affairs Nasution claimed that PLN has not implemented the policy, particularly the provision of discounted electricity tariff from late at night until early morning. "We will discuss this matter again. It turns out that PLN refused (to implement the policy), so there is still a dispute," he said in his office, Jakarta, Tuesday (3/5). Darmin will invite PLN and the Ministry of Energy and Mineral Resources to provide an explanation.
However, Energy Minister Sudirman Said, who attended a meeting with Darmin, said that PLN was not discussed. "We didn’t discuss the matter, I didn’t talk about it," said Sudirman. He claimed that he only provided an update on the progress of the government's national 35,000 MW electricity programme. Darmin confirmed this, saying, "Yes, it wasn’t actually about electricity."
Benny added that to promote the policy, PLN had communicated with the Indonesian Employers Association about the incentive, in November 2015. In addition to applying a 30 percent discount, PLN also claimed that it had also introduced a grace period on the payment of electricity bills in January 2016. (See also: PLN Pays Compensation to Customers for Poor Electricity Services).
This grace period for the payment of up to 40 percent of billed electricity is granted to labour-intensive industries and industries that struggle to compete with imported products, such as textiles and footwear. "If a customer goes into the 10-month programme with a bill of IDR 100 million, from months 1 to 10 they only have to pay IDR 60 million. In months 11 and 12, the normal rate is paid. Then in the 13th month onwards, the customer pays an instalment of (IDR) 20 million plus the monthly bill and so on, 20 times,” said Benny.