House rejects electricity tariff increase for poor people

The House of Representatives rejected the government's plan to raise electricity tariff for households consuming a maximum of 900 watt, Media Indonesia daily reported.

Head of the House's special team for fuel prices and electricity tariff Pramono Anung said the consumers of a maximum of 900 watt should be protected from the electricity tariff increase since they are mostly small income families.

He said the special team was worried that the plan to increase electricity tariff for the group of consumers could cause social and political problems.

Under the proposal of the government, only very poor households, who consume a maximum of 450 watt, would be protected from the power tariff increases which the government planned to implement in April this year.

Pramono also said the special team has proposed to raise the oil price assumption in the state budget to $20 per barrel, from the government proposal of $18 per barrel. (*)