Government Wastes IDR 337 Trillion Because Of Not Raising Electricity For 5 Years

Illustration of a citizen's electricity meter. (Photo: ANTARA)

JAKARTA - Since 2017 the government has provided subsidies and compensation for all classes of customer tariffs.

The electricity subsidy that has been disbursed by the government for five years is worth Rp. 243 trillion, and compensation is worth Rp. 94 trillion.

President Director of PT PLN (Persero) Darmawan Prasodjo said the total compensation that had been given to the community so far was able to reach IDR 4 trillion.

For this reason, the government has made a tariff adjustment which is only applied to affluent groups of people with a power of 3,500 Volt Ampere (VA) and above.

Meanwhile, for household customers with power below 3,500 VA, business and industry, there is no change in tariffs.

"Moreover, this year we are facing global turmoil which has resulted in an increase in the cost of electricity supply (BPP). Every increase in the price of Indonesian crude oil (ICP) of 1 US Dollar, will result in an increase in BPP of Rp. 500 billion. So that in 2022 alone, the Government is projected to need to prepare compensation of Rp 65.9 trillion," he said at a press conference in Jakarta, Monday, June 13.

With the tariff adjustment, household customers R2 with a power of 3,500 VA to 5,500 VA (1.7 million subscribers) and R3 with a power of 6,600 VA and above (316 thousand subscribers) the tariff is adjusted from Rp. 1,444,7 per kilowatthour (kWh) to Rp. 1 .699.53 per kWh.

Meanwhile, government customers P1 with a power of 6,600 VA to 200 kilovolt amperes (kVA) and P3 have the tariff adjusted from Rp. 1,444,7 kWh to Rp. 1,699.53 per kWh.

Meanwhile, P2 government customers with power above 200 kVA have the tariff adjusted from Rp. 1,114.74 kWh to Rp. 1,522.88 kWh.

"Considering that these 3,500 VA power customers and above are well-off families and are few in number, we appreciate the Government's steps to continue to protect the people, maintain economic stability and purchasing power, so that compensation is truly for those who are entitled to it," said Darmawan.

Darmawan believes that the adjustment of the tariff for household customers of 3,500 VA and above in the third quarter of 2022 will not have a significant impact on the national economy.

"Based on data from the Fiscal Policy Agency (BKF) of the Ministry of Finance, the inflation rate from the tariff adjustment for wealthy households and the government in the third quarter of 2022 has a small impact, or around 0.019 percent," he concluded.