Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Power Play
Bali Hotels, Bali Villas and Bali News from
Bali Hotels
Bali Villas
Special Deals!
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Bali Update
Subscribe to our free weekly newsletter!
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

++62 361 286 283

++62 361 286 284

U.S.A. Fax:(toll free)

U.K. Fax:

Australian Fax:

++62 812 3819724

Bali Discovery

Bali News

Power Play

Higher Electrical Rates Threaten Local Hotels with Bankruptcy

Bali News: Bali, Indonesia, PLN, Electrical Power Cost, Electrical Tariff. GIPI, KDL, Indonesian Association of Tourism, Bagus Sudibya, bankruptcy, power costs
Click Image to Enlarge


Bisnis Bali reports that a planned 15% hike in electrical power rates will increase overall energy costs by up to 10%. For many companies in the tourism sector, expenditures for energy represent 5% of gross revenues.

“The potential 15% increase in the basic electrical tariff (KDL) will increase the energy costs for hotels by up to 6%,” warned the vice-chairman of the Indonesian Association of Tourism (GIPI), Bagus Sudibya. At the same time, Sudibya warned that a 5% energy cost against total gross revenues represents the upper limit sustainable by local hotels.

Continuing, Sudibya said: “If (energy costs) are 6% of gross revenues, that is equal to an increase of 1% from total revenues. At one time, the cost of energy was 3% of gross revenues. Clearly, the (higher cost) will reduce the profit margins of hotels which are already under pressure.”

Citing an example, he said that if a hotel receives Rp. 2 billion (US$210,000) in sales revenues the cost of electricity will be Rp. 100 million (US$10,525). This, if the basic cost of electricity increases by 15% then the cost of electrical power increases to Rp. 120 million (US$12,630).

Sudibya said the government must begin to take note of supply and demand issues in approving new accommodation permits. “it’s just not healthy to have too many rooms,” Sudibya also said rising energy costs are especially problematic in an uncontrolled competitive situation where rates are under pressure.”

Issuing a final warning, Sudibya said: “Don't allow supply (of rooms) to be out of control while electrical costs are on the increase. Many hotels owned by local businesspeople will go bankrupt.”

© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to


Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!

Our [Privacy Statement] explains how we handle the data you are providing.

Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!

or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Bali's Best Dining and Bars
Baliís Best Restaurants, Bars, And Cafes 2015 Crowned
Pray for Rain
Extended Drought Threatens Severe Water Shortage in Kuta and Other Areas of Bali
Double Bladed Consequence
Italian Tourist Goes berserk and Attacks Warung Owner with a Knife in Sanur Bali
A Night at the Museum
Baliís Arma Museum Named the Nationís Best Privately Owned Museum
Keeping Ahead of the Wave
New Tsunami Early Warning System Tower at Kedungu Brings to 9 the Total Number of Tsunami Warning Towers in Bali.
Needed: Stroke of Good Luck
New Kuta Golf Course 8th Anniversary October 10-11, 2015
A Ban on Reclamation?
Maritime Affairs Minister Announces Plans for a Moratorium on Reclamation of Seashores Nationwide
Liberalizing Indonesiaís Cruise Sector
Foreign Flagged Cruise Ships Allowed to Carry Domestic Passengers
Dogs Tied to a Poll
Bali Post Conducts Public Opinion Survey on Governmentís Response to the Rabies Crisis
Everything on your Plate
Police and provincial Authorities Warn that Motor Vehicles Staying More than 3 Months in Bali Must Convert to Local Police License Plates
Pearls of Wisdom
Pearls of North Bali and the Women Who Fashion Them at Living Lobby Art Exhibition Masters Showcase at Conrad Bali Resort Through January 10, 2015
When Kids Communicate and Collaborate
Global Issues Network Conference in Bali October 16-18, 2015
All [News]!