Indonesia - PLN Director: No Electricity Price Hike

Indonesia - PLN Director: No Electricity Price Hike

State-owned electricity company PLN president director Sofyan Basyir
clarified that there was no electricity price hike, but a subsidy removal
for 900-watt customers.

"The electricity price for this month is not increased today for the
customers with the electricity power of 450[-watt], 900-watt, 1,300-watt and
above. In fact, the electricity price per kilowatt hour is lowered," Sofyan
said during a press conference at the Presidential Staff Office in Jakarta
on Friday, January 6, 2016.

He explained that the removal of electricity subsidy for 900-watt customers
was commenced today, as the government viewed that they are not categorized
as poor people.

Sofyan added that the subsidy would be used to electrify remote areas. He
revealed that about 2,000 villages are still without electricity to this
date.

"In Sumatera, about 1,300 villages [are not electrified yet], and in Papua,
about 1,400 villages [are without electricity]. So, we expect that these
villages can enjoy electricity next year. The amount of funds needed to
provide 4 million people with electricity is about Rp3 trillion (US$230.5
million) or Rp4 trillion (US$307.5 million)," Sofyan added.

He claimed that the subsidy transfer had been disseminated over the last ten
months. He admitted that before deciding the subsidy transfer, PLN had
conducted a survey involving the Central Statistics Agency (BPS).

"Over the last 10 months, we have disseminated [the subsidy transfer plan]
to all. So, once again, there is no electricity price hike. What we're doing
is transferring subsidy from those who are not entitled to it," Sofyan
asserted.

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Link to Original Article:
https://en.tempo.co/read/news/2017/01/06/056833333/PLN-Director:-No-Electric
ity-Price-Hike

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com