450 VA And 900 VA Subscribers Are Still Categorized As Recipients Of Electric Subsidy, Head Of Banggar Asks The Ministry Of Social Affairs And PLN Integration Of Data

Chairman of the House of Representatives Banggar Said Abdullah. (Photo: Doc. Antara)

JAKARTA - Chairman of the DPR RI Budget Agency (Banggar) Said Abdullah emphasized that until now, 450 VA and 900 VA power customers are still in the household category that get electricity subsidies by the government. Said said this needs to be straightened out because 900 VA customers have been assisted, not including electricity customers subsidized by the government.

This opinion is to lead customers with 450 VA power to refuse to be diverted to 900 VA. For this reason, Said encouraged the Ministry of Social Affairs, BPS, PLN, and local governments to work together to update and integrate data.

Banggar DPR encourages BPS to immediately accelerate social registration. This joint step is very important so that the accuracy of the social assistance program as an absorption force is more accurate.

Considering, through accurate data we can also formulate other strategic policies such as energy transition so that technical policy choices are also appropriate. Energy transition efforts are certainly not only in the household sector. The transportation sector, which absorbs 46 percent of the total national energy consumption, must also move together towards electric movement. Therefore, I appreciate President Joko Widodo's real steps, which are the pioneers of the use of electric-driven government official vehicles," Said said in his official statement, Monday, September 19.

Meanwhile, to support this step, he continued, the DPR has given budget approval to the government through State Investment (PMN) of Rp. 10 trillion to build infrastructure to production centers, both MSMEs and large industries to encourage increased demand for electricity.

Said hopes that this transformation will change the burden of our subsidy from oil heavy to electric heavy. So that the diesel subsidy whose consumption is 95 percent is enjoyed by households capable of equivalent to 1.69 million kiloliters can be diverted.

This includes the consumption of pertalite which is able to be 80 percent equivalent to 15.89 million kiloliters, which can be relocated for subsidies to electricity to make it more efficient and on target. In fact, subsidies will be more efficient if they slowly shift LPG subsidies, which 68 percent are enjoyed by capable households. The budget can be allocated for poor households accessing electrical energy for their daily needs. LPG can be reserved for mobile traders, micro and small business actors.

He continued, the industrial sector has absorbed 31 percent of the national energy consumption. "We also encourage slowly switching from fuel to electricity so that their production is more certain and resilient because it is not affected by external factors in the form of rising world oil prices and exchanges. In very strategic policies, we need to shift energy from oil-based to electricity because we have a very large dependence on petroleum. Our petroleum production capability is only 614-650 thousand barrels per day, while our needs reach 1.4-1.5 million barrels per day, said Said.

Said explained that dependence on oil imports has resulted in Indonesia being stuck in the difficult position that is often faced repeatedly, such as the increase in petroleum prices and the exchange rate being cornered by Indonesia in a difficult position.

The state budget must provide a larger subsidy, so that the state budget posture is not healthy and vulnerable. If these costs are reduced, the price of fuel oil (BBM) increases and causes burdens to the people. Therefore, Indonesia must immediately get out of the oil trap.

We currently have a very large domestic electricity production, which is able to support our energy needs. This is the matter that is motivated so that we immediately switch energy from petroleum to electricity. Most of our power plants are filled with coal. Our coal supply is very large, so it does not depend on import supply like petroleum. As a result, our energy strength is more independent, while slowly we escape from coal and replace our power plants using New and Renewable Energy (EBT)," concluded Said.