Industry Demands Electricity Costs Relief

Summary

The two largest Indonesian employers 'organizations, the Chamber of Commerce and Industry (Kadin) and the Indonesian Employers' Association (Apindo), are demanding relief from electricity costs from the government after re-imposing large-scale social restrictions (PSBB) in Jakarta. Apindo Deputy Chairperson Shinta Kamdani said the electricity payments postponement would be a key stimulus for the industry. "If there is a power cut because employers cannot pay the fees, the manufacturing industry will collapse, and de-industrialization may occur," said Shinta, Thursday (9/17).

Shinta believes the expansion of electricity incentives will not have a domino effect, as the government can inject funds into PT Perusahaan Listrik Negara (PLN). Meanwhile, Kadin's Deputy Chairperson of Industry, Johnny Darmawan, said that this incentive is only given to industries that cannot cover their operating expenses and industries that live from hands to mouths. He argued that the electricity incentives should not be given to industries that are still profitable during the COVID-19 pandemic, such as the telecommunications, pharmaceutical, and food and beverage industries.

Start your free trial.

If you would like to get a 30-day free unlimited access to all of our insights, please click “Start free trial” button below. If you already have an account, please login.

What do subscribers receive?

As a subscriber, you’ll receive daily insights, weekly business digests, and bimonthly industrial reports.

What kind of pieces will i get?

In-depth reports on assumption and impact analysis, as well as update and trends mapping, written by our credible and experienced analysts.

And, there is something else…

Enjoy a 30-day free trial, on us. Feel free to contact us with any additional questions you have.