INDUSTRIALISTS MAINTAIN REJECTION TO POWER TARIFF HIKES

Andi Abdussalam

Jakarta, Oct 25 (ANTARA) - Industrial circles maintain their opposition to the government's plan to raise electricity tariffs by 15 percent next year, saying it would increase production costs, boost imports, trigger inflation and disadvantage local consumers.          "Increased power rates will raise our product prices and thereby reduce their competitiveness against imported commodities," General Chairman of the Association of Indonesian Local Brand Owners (AMIN) Putri K Wardani said here on Wednesday.          The government will impose a quarterly 4-percent automatic power rate hike beginning from January next year in an effort to reduce swelling subsidies in all sectors, which will amount to Rp316.1 trillion in 2013.          The House of Representatives on Tuesday endorsed the government's proposal in the draft state budget to set aside a subsidy amounting to Rp80.9 trillion for electricity next year. The government is planning to reduce the power subsidy burden through an automatic electricity rate hike every quarter next year.