PLN: Electric Stoves Make Energy Subsidies More Targeted

ILLUSTRATION/PHOTO VIA ANTARA

JAKARTA - PT PLN (Persero) revealed that the conversion of Liquefied Petroleum Gas (LPG) stoves to induction or electric stoves makes energy subsidies more targeted.

Director of Commerce and Customer Management Bob Saril said so far the method of distributing subsidies in the electricity sector has proven to be the most effective compared to other energy subsidies.

For disadvantaged people who currently get subsidized electricity with a power of 450 VA, of course, they will not be able to do the conversion, considering that induction stoves require a large amount of electricity.

Therefore, PLN has begun to review the mechanism for subsidized customers, so that the poor will also be able to benefit from the conversion program to induction cookers.

"How do small people enjoy it. PLN has data on houses that match their names and addresses. Each house has a meter. We can use that," said Bob in a written statement quoted by Antara, Thursday, December 9.

PLN is currently studying how to maximize the Integrated Social Welfare Data (DTKS) for the distribution of this subsidy later. In addition, PLN will also propose to the government for simpler tariff reforms for a more targeted distribution of subsidies.

"We have discussed it with the regulator, in this case, the Ministry of Energy and Mineral Resources. Or we can also take advantage of digitalization, electric stoves are now digital, so they can be marked to distribute subsidies that are right on target," he said.

Regarding President Jokowi's directives, Bob added that PLN is currently focusing on campaigning for the advantages of cooking with an induction cooker that is comfortable, easy, harmless, and even safe for children. In addition, the use of electric stoves is also proven to be cheaper, because of the high level of efficiency.

"In simple terms, when you cook water with an electric and gas stove, the time it takes to cook using electricity is faster. Why is it faster? From a glance when we cook, the pans/pans are directly attached to the stove so that the heat is not wasted, while the gas stove is there the distance, there is heat that is wasted," he said.

The conversion program from LPG stoves to induction cookers promoted by PLN does not only talk about increasing electricity demand or reducing the trade balance deficit. This program can be an alternative way to solve the problem of energy subsidies which have been considered less targeted.

So far, energy subsidies issued by the government continue to increase every year, an average of 3.7 percent and it is estimated that in 2022 the allocation of energy subsidies will increase by 4.3 percent compared to 2021.

Main Expert Staff of the Presidential Staff Office (KSP) Edy Priyono said that so far the LPG subsidy is of great value because it is mostly enjoyed by groups who are not the target of this subsidy.

"It is estimated that around 65 percent of the LPG subsidies that are enjoyed are not the poor or vulnerable groups. That is what makes the country a big loss because we import," said Edy.

Therefore, President Jokowi Widodo's verbal direction in front of the directors and commissioners of PLN regarding the conversion of LPG stoves to induction stoves can be a momentum for energy subsidy reform that has never been resolved properly.