The Era Of Electricity Subsidies Above 3,000 VA Is Over! SOE Minister Erick Thohir Ensures Continued Subsidy For Poor People

Illustration. (Photo: Doc. Antara)

JAKARTA - The government plans to increase electricity tariffs for low-income customers above 3,000 VA. Minister of State-Owned Enterprises (BUMN) Erick Thohir said now was not the era to provide subsidies to those who could afford it.

"Now is not the era to subsidize people who can afford it, because in the future even electricity that is above 3,000 VA may have a policy of no longer being subsidized," he said at a Working Meeting with Commission VI DPR RI, Tuesday, 7 May.

Even so, Erick emphasized that the government will continue to pay attention to the condition of the poor by subsidizing electricity. According to him, this is a form of government presence among the people.

For your information, in 2022 the government will set an additional electricity subsidy of Rp. 3.1 trillion from the previous Rp. 56.5 trillion to Rp. 59.6 trillion. The government also added electricity compensation by Rp. 21.4 trillion.

This year's tariff adjustment plan is a step in the short-term strategy of the electricity sector to deal with rising world oil prices. With this electricity adjustment policy, it is projected to save costs of Rp. 7 trillion to Rp. 16 trillion.

The tariff adjustment is also to maintain the continuity of the business of providing electricity, improving the quality of service to consumers.

This includes increasing electrification, and encouraging more targeted electricity subsidies due to changes in the exchange rate, the price of Indonesian crude oil (ICP) and inflation to finance the supply of electricity, including fuel.