This Is The Reason Why The Government Will Stop Electricity Stimulation Starting In July 2021

JAKARTA - The government will stop the electricity tariff stimulus during the COVID-19 pandemic starting from July 2021, in line with the recovery of the economic condition of the people in many areas.

"The third quarter of 2021 has not yet been implemented and it is possible that it will be implemented then we will see the conditions," said Director General of Electricity at the Ministry of Energy and Mineral Resources (ESDM) Rida Mulyana in a statement quoted in Jakarta, Sunday. that the national economic recovery policy is still continuing and showing positive results. Based on data from the Central Statistics Agency, despite a contraction, economic growth in the first quarter of 2021 was recorded at minus 0.74 percent on an annual basis (yoy), improving compared to growth in the fourth quarter of 2020 of minus 2, 19 percent. Even entering the beginning of this year, there were 10 provinces that recorded positive economic growth, namely Papua with a realization of 14.28 percent, North Maluku with 13.45 percent, and Central Sulawesi with an economic growth of 6.26 percent.

Then Yogyakarta recorded economic growth of 6.14 percent, North Sulawesi by 1.87 percent, and West Papua by 1.47 percent. Furthermore, the Bangka Belitung Islands also grew 0.97 percent, Riau grew 0.41 percent, East Nusa Tenggara grew 0.12 percent, and Southeast Sulawesi grew 0.06 percent. By looking at the trend of economic growth since the end of last year until the first three months of 2021, the government then decided to stop the electricity stimulus. "That's a general decision regarding other social assistance no longer being assisted by the state," said Rida. Until April 2021, the realization of electricity subsidies was recorded at IDR 22.10 trillion, consisting of subsidies for 25 PLN customer groups worth IDR 17.36 trillion, discounts for underprivileged households in the 450 VA and 900 VA groups of Rp4.67 trillion, and discounts on the 450 VA business class and 450 VA industries worth Rp66 billion. In the context of handling the impact of the COVID-19 pandemic, the government provided a stimulus in the form of a 100 percent discount on electricity bills for customers. 450 VA household class and 50 percent discount for 900 VA household customers since April 2020.

A 100 percent discount is also provided for small business and industrial customers with a power of 450 VA as well as exemption from minimum fees, subscriptions and expense fees for social, business, and industrial customers with a power of more than 1,300 VA. The provision of electricity stimulus continues to be extended and is valid until the second quarter. 2021 with a discount given only 50 percent of the stimulus received previously. As for starting next July, the government will stop the electric stimulus completely following the improving economic conditions. Economists consider that the government's decision to stop the electricity stimulus is the right step because it can ease the financial burden on the state.