Jakarta – Indonesia's state electricity company PT Perusahaan Listrik Negara (PLN) said Monday it was seeking a 29.4 percent across the board increase in basic electricity tariffs this year.

The proposal, made by PLN president director Kuntoro Mangkusubroto during a a hearing with the People's Representative Council (DPR), would see the tariff increased to 293 rupiah (3.4 cents) per kilowatt-hour from the current 227 rupiah. Kuntoro said the proposed tariff hike would be applied to all users.

He said PLN so far has incurred losses partly because it had to subsidise large industrial users. Under an economic reform program agreed with the International Monetary Fund (IMF), which is coordinating a 46 billion dollar bailout aid for the country, Indonesia is striving to rid itself of costly state subsidies, including those for power, telecommunications and fuel.