Ministry of Finance of Republic of Indonesia : Government Conducts Electricity Subsidy System Reform

Jakarta, 06/01/2016 MoF - Government conducts electricity subsidy system reform in accordance to Integrated Data Base by removing electricity subsidy of 900 VA consumers who are not considered as poor. Meanwhile, poor households using 450 VA electricity are still fully subsidized. With this regulation, the consumer of 450 VA increases from 23 million to 27 million.

State-owned electricity company (PLN) president director Sofyan Basir pointed out, many 900 VA consumers who in fact do not deserve of subsidy, such as boarding house owner. 'We revoke the subsidy of this type of consumer as they don't deserve it,' he said at press briefing in Presidential Staff Office, Jakarta today (06/01).

Later, the subsidy fund will be used to electrify households at remote areas, boarder areas, and outermost islands. 'They are more entitled to it; small villages that are still without electricity,' he said. For information, allocation of electricity subsidy is set at IDR45 trillion in 2017 State Budget, dominating the total energy subsidy of IDR 77.3 trillion.(as/rsa)