Gov´t Wants Accurate Electricity Tariff Subsidy

Thursday, 25 May 2017 , 18:00:00 WIB - Economy

A clothing worker is seen making a sweatpant at Kampong Bantargedang, Tasikmalaya, West Java, Wednesday (3/5). Removal of subsidy for the tariff of 900 VA household power brings an impact on small and medium clothing enterprises that used to capable of producing 1,500 sweatpants to 600 sweatpants per day. (ANTARA)

JAKARTA, GRES.NEWS - To ensure that the electricity tariff subsidy is provided for underprivileged people, the government implements the Accurate Electricity Tariff Subsidy Policy (SLTS) since January 1, 2017. The policy aligns with the mandate of Law No.30/2007 on Energy and Law No.30/2009 on Electricity. The law asserts that the government provides subsidy funds for underprivileged people.

The implementation of the policy is also based on the result of a work meeting between the Energy and Mineral Resources Minister and the House’s Commission VII on Septemeber 22, 2016. The government and the House agree that electricity tariff subsidy can’t be granted for households that use 900 VA electricity as they are economically advantaged. "The policy is implemented to serve justice for underprivileged people," said the Electricity Work and Development Director of the Energy and Mineral Resources Ministry’s Directorate General of Electricity, Hendra Iswahyudi, in a written statement received by, Thursday (25/5).

According to the Integrated Data of Underprivileged People Administration (DTPPFM), 4.1 million households that are economically disadvantaged are recorded as 900 VA electricity customers. Meanwhile, the data of PLN customers shows they have about 23 million customers. "Households that use 900 VA electricity and not recorded in the DTPPFM are not allowed to get the electricity tariff subsidy because they are considered economically advantaged," Hendra added.

Therefore, the tariff for them will increase gradually every two months until it reaches the economic tariff on May 1, 2017. The policy is implemented because 7 million households, or 28 million people in Indonesia still don’t have any access to permanent electricity.

"SLTS implementation is expected to save Rp22 trillion budget at the end of 2017. The budget will be used for many purposes, one of them is to increase the national electrification ratio that currently reaches about 91 percent," Hendra added.

Hendra added that households that use 450 VA still receive the subsidy, and the electricity tariff for them won’t change. Besides providing the subsidy for underprivileged people, the government also provides the subsidy for small and medium enterprises (SMEs), and social facilities like mosques, churches, public health centers (Puskesmas) or hospitals.

DTPPFM is an integrated data managed by the Social Affairs Ministry and the National Team for the Acceleration of Poverty Alleviation (TNP2K) according to the survey conducted by the National Statistics Agency (BPS). The data is used as a basis of SLTS that comes from the Improvement of Integrated Data Basis (PBDT) created in 2015, and established by the Social Affairs Minister through the Social Affairs Minister Decision Letter.

Although the data has been improved and involved the public representatives and the village or subdistrict officials, the government realizes there are still many underprivileged people that are not recorded in the DTPPFM. Therefore, the government creates a mechanism for people to deliver their complaints if they feel they deserve to get the subsidy. (dtc)