Indonesia: PLN to Cut Electricity Subsidy Next Year
State-owned electricity company PLN confirmed subsidy cuts for 900 VA
customers, as they are viewed as unqualified to receive electricity
subsidies from the government.
"There are about 18 million out of 23 million 900-VA customers, whose
subsidies are going to be revoked," PLN marketing division head Benny Marbun
said in Jakarta on Friday, November 18, 2016. "Meanwhile, 4 million 900-VA
customers who receive the subsidy have been verified."
PLN previously set a target to remove the subsidy in July 2016. PLN revealed
that there were only 4.3 million 900-VA and 450-VA customers who were
qualified to receive the subsidy. Former Energy and Mineral Resources
Minister Sudirman Said pointed out that the budget could swell each month if
the subsidy cuts were not realized immediately.
Based on a data from the Energy and Mineral Resources Ministry, in January
and February 2017, the 900-VA customers whose subsidies are to be removed
will be imposed with regular tariff at Rp682 per kWh for Block III (above 60
kWh), Rp582 per kWh for Block II (20-60 kWh), and Rp360 per kWh for Block
III (under 20 kWh). Meanwhile, the tariff for prepaid electricity customers
is Rp791 per kWh.
In May 2017, the subsidy will be removed entirely. Customers will be imposed
with a tariff of Rp1,352 per kWh for all blocks. The tariff is equal to that
imposed on customers of 1,300 VA and above.
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Link to Original Article:
http://en.tempo.co/read/news/2016/11/18/056821356/PLN-to-Cut-Electricity-Sub
sidy-Next-Year
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John Diecker
APT Consulting Group Co., Ltd.
www.aptthailand.com
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