Industry Demands Electricity Costs Relief

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.