Banjarnegara, C Java, (ANTARA News) - Chief Economic Minister Hatta Rajasa said that the government had corrected the basic power rate hikes so that it would not become a burden of small businesses.

"The power rate hikes have been revised to a range between minus percentage and the highest 18 percent. The number of those to be affected by the highest hike is small," the minister said after a dialog with villagers here on Sunday.

He said that the government hoped the electricity rate increases would not lead to the closure of small businesses. The minister said that the government had taken into account the effect of the power rate increases on small businesses.

"An average increase of 12 to 15 percent with a five percent power production cost, with an effect on production would only be about zero point," the minister said.

The government has raised the power tariff rates to an average of 10 percent with an
maximum of 18 percent, but industries complained that after they calculated, the increases exceeded the 18 percent promised by the government.The tariff rate increases took effect as of July 1, 2010. (*)

Editor: Aditia Maruli

COPYRIGHT © 2010

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