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Bali Set to Lose Power Price Supports

Central Government Prepares to Yank Subsidies for Bali's Electricity Consumers.

(9/15/2006) According to the Indonesian language Bisnis Indonesia, the Government plans to end electrical rate subsidies to a number of areas in Indonesia considered "economically viable" and able to pay their own way for electrical power in the view of the Central Government.

Among those regions likely to see "regional tariffs" with potentially higher prices for electricity introduced in the near future due to the loss any aid from price subsidies are Jakarta, Bali and Bangka Belitung.

Batam and Tarakan (Kalimantan) are two areas of Indonesia already operating on a "regional tariff basis" with electrical power for each district provided by a subsidiary company of the state power company (PLN).

In announcing the plan to end subsidies to Bali, the Director General of Electricity and Energy, J. Purwono, said Bali was judged suitable to lose its price subsidies because the majority of power used on the island is consumed by sustainable industry and commercial interests.