Research Institute Calls For Acceleration Of Coal Power Plant Development

Jakarta, Aug 22 (ANTARA) - A research institute chief said the government would not have to raise electricity tariff if completion of coal-fired power plant development projects could be accelerated. Pri Agung Rakhmanto, the head of ReforMiner Institute, a research institute for mining, energy and environmental reform, said here on Wednesday "if a lot of the 10,000 MW electricity projects that use coal as its source of energy could be completed electricity production cost would drop thus reducing electricity subsidy. So, the government would not have to raise the electricity tariff." He said the next step would be increasing gas supply to meet the needs of natural gas-powered plants by accelerating infrastructure development such as gas reserve terminal and pipeline distribution network. He said rising electricity subsidy reaching Rp80.9 trillion set in the 2013 draft budget could not only be overcome by raising electricity tariff because the increasing subsidy had so far been caused by excessive use of oil as an energy source for power plants. "The electricity subsidy reaches almost Rp100 trillion so that electricity tariff must be raised to reduce the burden" energy minister Jero Wacik said at a press conference on the 2013 draft budget last Friday. He said much of the subsidy had so far been enjoyed by the middle- and high-class of the society while many poor people in various regions have not yet had access to electricity. In 2012 the electricity subsidy set in the budget reaches Rp65 trillion while in the 2013 draft budget it is projected to reach to Rp80.9 trillion.