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Power has its Price

Electrical Charges in Indonesia Increase an Average 4.3% on April 1, 2013

(4/1/2013) Electricity charges in Indonesia will rise an average 4.3%, effective April 1, 2013. The prospect of higher energy costs has many hotelier in Bali strategizing on how to reduce energy consumption and, in some cases, reduce staffing in order to be able to pay their electrical bills.

The vice-chairman of the Indonesian Hotel and Restaurant Association (PHRI-RI), Johnnie Sugiarto, told detikfinance that the increase electrical tariff was putting hotel operators under pressure. He described how the higher power charges come at a time when many hotels are experiencing low occupancies and increases in the minimum wage levels set by regional governments.

Sugiarto warns that in order to address these business pressures the management of hotels will seek to reduce the number of employees while, at the same time, reducing the amount of electricity used by each property.

The April 1, 2013 increase of 4.3% in electrical charges follows a similar increase in power charges introduced on January 1, 2013.

The increase effective on April 1, 2013 varies depending on the consumer’s classification according to categories assigned by the State Power Board (PLN):