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Workers reject electricity hike

Source
Jakarta Post - June 30, 2010

Rana Akbari Fitriawan and Panca Nugraha, Bandung/Mataram – Hundreds of workers took to the streets in Bandung, West Java, on Tuesday to reject the central government's plan to raise electricity fares starting July.

The workers, from different companies in Bandung city and regency, Cimahi city and West Bandung regency, staged their protest outside Gedung Sate building.

"The policy to increase the electricity rates shows that the government does not care for the people," said Jajang, a worker who came from West Bandung.

He feared the raise would raise companies' operational costs, which later may trigger a mass workers' dismissal. The workers, most grouped under the All-Indonesia Workers Union (SPSI), demanded the government drop the plan to raise electricity costs.

The House of Representatives' Commission VII overseeing energy and minerals agreed on June 15 to the government's plan to raise the base electricity rates by an average of 15 percent for all customers starting July 1, excluding those using between 450 and 900 volt-amperes.

The government said the electricity rate adjustments would save Rp 7.3 trillion in government subsidies until the end of the year. Electricity subsidies in the 2010 state budget revision reached Rp 55.1 trillion (US$6.06 billion), higher than the previous estimate of Rp 37.8 trillion.

President Susilo Bambang Yudho-yono said last week the adjustment was needed to safeguard the economy while protecting low-income people.

Before the workers' protest, about 1,000 members of the Hizbut Tahrir Indonesia (HTI) in West Java staged protests for a similar reason.The group's spokesman, Luthfi Afandi, said there were many things the government could do to reduce the subsidy without burdening the people.

"One measure is to ensure efficiency within [state electricity company] PLN and prevent leaks and corruption," he said.

Separately, in West Nusa Tenggara, PLN promised that rotating blackouts in Lombok would end early July at the latest.

The company's general manager in the province, Purwanto Penabang, said Tuesday the rotating blackouts would end due to the operation of 22 units of rented generators with the capacity of 22 megawatts starting last Friday. The 22 generators, he added, had been placed at PLTD Ampenan and PLTD Taman Mataram diesel power stations.

"We can end the rotating blackouts early July," Purwanto told The Jakarta Post. He said that with the rented units, PLN could supply 95 megawatts of electricity, while during peak hours it should be able to supply 110 megawatts.

"We can cover up the 15 megawatt deficit with a supply from PLTD Paokmotong diesel power station in East Lombok, which is currently under repair," he said.

Previously, Lombok residents suffered from 24-hour blackouts every two days since the company experienced a 40-megawatt deficit.

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