Government Won´t Remove Subsidy for 450-VA Customers

Friday, 16 June 2017 , 18:00:00 WIB -

Energy and Mineral Resources Minister Ignasius Jonan (middle) and the President Director of PLN Sofyan Basir (right) are seen monitoring the Java-Bali Region Control Center (P2B) in Gandul, Cinere, Depok, West Java, Thursday (15/6). (ANTARA)

JAKARTA, GRES.NEWS – The government has confirmed they won’t remove the subsidy for 450-VA customers next year after the Energy and Mineral Resources Ministry and the House’s Commission VII held a work meeting to establish the indicative ceiling of the Energy and Mineral Resources Ministry in 2018.

"We won’t change the budget for 450-VA electricity subsidy. We will only cut the subsidy for 900-VA customers so the subsidy would be provided accurately," said the Deputy Chairman of the House’s Commission VII from Democratic Party’s Faction, Mulyadi, Thursday (14/6). The allocated budget for the electricity subsidy reaches Rp52.66-56.77 trillion.

Previously, there was a rumor saying that electricity subsidy for underprivileged people would be removed. Member of the House’s Commission VII, Satya Widya Yudha, wanted the rumor to be corrected. "We have to correct it. The House members never say that the electricity subsidy for underprivileged people would be removed. The government must communicate (about the electricity subsidy) massively," he said.

Director General of Electricity, Andy Noorsama Sommeng, confirms that the government never planned to remove the subsidy for 450-VA customers. "We never come up with the plan," he said to the work meeting leaders.

The subsidy for the energy sector in 2018 would be provided for oil-based fuel (BBM), which reaches Rp9.7-18.12 trillion comprising of Rp2.58-2.50 trillion for kerosene and Rp7.42-15.62 trillion for Solar diesel fuel, Rp43.77-44.10 trillion for 3kg LPG cylinders, and Rp52.66-56.77 trillion for electricity.

The work meeting concludes that the total subsidy for the energy sector in the 2018 State Budget Plan (RAPBN) reaches Rp106.13-118.99 trillion. (rm)

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