JAKARTA - The government has decided to remove the plan to provide electricity subsidies from the five incentive policy packages that will take effect from June-July 2025.
Minister of Finance Sri Mulyani Indrawati explained the main reason for the cancellation was because the budgeting process was deemed not fast enough to pursue the implementation targets in June and July.
"The electricity discount, it turns out that the budgeting needs or processes are much slower. So if we aim to be June and July, we decide that it cannot be carried out," he said after a limited meeting with President Prabowo Subianto as reported by ANTARA, Monday, June 2.
Instead, the government chose to shift the budget to the Wage Subsidy Assistance (BSU) program, which was considered more prepared in terms of data and execution.
Sri Mulyani revealed that in the early stages of designing, BSU still raises questions regarding the target recipients because of previous experience during the COVID-19 pandemic, recipient data still needs to be cleaned.
Over time, said the Minister of Finance, data managed by BPJS Ketenagakerjaan has now been updated and verified to reach workers earning less than IDR 3.5 million.
"Now, because BPJS Ketenagakerjaan data is clean to really work below Rp3.5 million, and is ready, then we decide with data readiness and program speed, we are targeting wage subsidy assistance," he said.
The discourse on incentives for electricity was previously conveyed by the Coordinating Minister for Economic Affairs Airlangga Hartarto.
The incentive is given in the form of a 50 percent discount on electricity rates for around 79.3 million household customers with a maximum electricity power of 1300 VA.
The scheme is proposed to take place from June 5 to July 31, 2025 and refers to the discounting pattern previously implemented at the beginning of the year.
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The government released five incentive policy packages with a total allocation of IDR 24.44 trillion, which aims to maintain people's purchasing power and promote national economic stability, which includes:
1. Transportation Discounts During the June 'July 2025 school holiday, the government provides discounted train tickets (30%), aircraft (PPN DTP 6%), and sea transportation (50%) with a budget of IDR 0.94 trillion.
2. Discount of Discount Toll Rates of 20% for around 110 million motorists, sourced from non-APBN funds of IDR 0.65 trillion.
3. The thickening of Social Assistance for the Addition of Basic Food Cards Rp. 200 thousand/month and food assistance of 10 kg of rice for 18.3 million KPM, with a budget of Rp. 11.93 trillion.
4. BSU Wage Subsidy Assistance (BSU) amounting to IDR 300 thousand for 17.3 million honorary workers and teachers for two months (June 'July), distributed in June, with a budget of IDR 10.72 trillion.
5. Extension of JKK Discount Contribution Discount 50% work Accident Insurance contributions for six months (August 2025) for labor-intensive sector workers, with a budget of IDR 0.2 trillion (non-APBN).
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