Legitimate! Sri Mulyani Raises Electricity Rates For Rich People By 3,000 VA To Reduce Budget Burden

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani received DPR approval regarding the proposed increase in electricity rates for the community using 3,000 VA of power.

According to the Minister of Finance, this policy is intended to reduce the burden on the budget considering that most electricity production is generated through the coal consumption process. Meanwhile, the government is known to run a number of fiscal incentives to stabilize domestic coal prices.

"To maintain justice and share the burden, the government needs to increase the electricity tariff for 3,000 VA customers who are considered capable," he said during a Working Meeting (Raker) with the DPR's Budget Agency at the Senayan Parliament Complex, Jakarta on Thursday, 19 May.

In the Minister of Finance's explanation, the 2022 State Budget Law allocates the value of electricity subsidies of Rp. 56.5 trillion. It is believed that this amount will swell to Rp. 59.6 trillion assuming current energy prices.

"The government needs to immediately adjust the ceiling for subsidies and compensation, so that the finances of business entities (Pertamina and PLN) are healthy and maintain national energy availability," said Minister of Finance Sri Mulyani.