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Jum'at, 27 April 2018



Electricity Subsidy is Supposed to be Enjoyed by Financially Incapable People

GRESIK – The Government launched subsidy for Rp 314, 75 trillion in 2014 for Oil Fuels (BBM), Liquefied Petroleum gas (LPG), and Biofuels (BBN). In 2015, the Government predicted that within the next five years the energy subsidy would significantly decrease up to 53% of the previous period from Rp 1.340 trillion to Rp Rp 561 trillion. The Government will review the subsidy in order to be right on the target.

“The basic principal that we have to remember is that subsidy should be enjoyed by those who have right. The result of our study, PLN team, MEMR team, and also TNP2K team showed that many subsidies’ beneficiaries are not the right people,” confirmed the Minister of Energy and Mineral Resources, Sudirman Said during the visit to Java Bali Grid (PJB) Gresik, Thursday (3/31).

Sudirman also gave an example that subsidies’ beneficiaries are not right on target, “Installing 450 watt of electricity but having luxurious car ‘alphard’. This is inappropriate, so we have to make sure that the subsidy should be for those having right to enjoy it,” affirmed Sudirman.

Regarding the data verification on electricity subsidy’s beneficiaries, the Director General of Electricity explained that PLN has reported the verification result on subsidy’s beneficiaries to the Minister of EMR. The verification showed that of all 22 million of customers installing 900 VA, only 4, 1 million are having right to subsidy, while the remaining 18 million are not ,” confirmed Jarman.

The PLN verification result will be followed up immediately by the Government by reporting it the President of the Republic of Indonesia as the highest leader. “Those 18 million costumers will be charged the economical tariff gradually. Based on the Law of Energy and Electricity, financially incapable people are those having right to enjoy the subsidy,” affirmed Jarman. (AK)