The Government Cuts Electricity Subsidies, PT PLN Conducts Socialization So That People Are Not Surprised

Illustration. (Photo: Doc. Between)

JAKARTA - The government officially extended electricity subsidies for households and small and medium-sized industries until June 2021. However, subsidies are no longer provided for free but the government cuts its subsidies to 50 percent.

"For the second quarter there has been a decision from the government issued, in which the core decision of all customers who received stimulus in the period 2020 and the first quarter, the value of 50 percent was given in the second quarter", said EVP ATS PT PLN (Persero) Tohari Hadiat, in Jakarta, Wednesday, April 14.

Initially, he said, the government gave discounts of up to 100 percent or free to household customers with an electricity capacity of 450 VA. Now, the stimulus discount is cut by only 50 percent. Meanwhile, household customers with a capacity of 900 VA and the MSME industry who originally got a 50 percent discount, now only 25 percent.

Similarly, the stimulus in the form of exemption of the application of minimum account provisions. Currently, it is trimmed to 50 percent for social, business, and power industries 1.300 VA and above as well as special service groups.

PLN conducts socialization

Tohari said PLN has started to socialize this discount change to its customers. So they already know this change before paying the electricity bill.

"We did some preparations including from the internal by adjusting the payment system. Our team also continues to socialize, so this can be understood and customers do not ask again that there is a change", he explained.

The socialization in question is the PLN team directly focuses on customers who get discounts. For example, visiting a customer's house one by one by the meter reading officer and carrying a letter.

"For example, you starting submit this month's bill to the government, but the value becomes 50 percent", he said.

Usually, says Tohari, electricity bills come out on the 20th of each month. Socialization is done so that the public is not surprised by the amount of bills that need to be paid will be different from the previous months' bills.

"The target is, they must have already got the 50 percent before they pay the bills. And pay around the 20th (every month). The target is so that (customers) do not be surprised before they pay already get notice", he said.

Second-quarter electricity subsidy recipients of 30 million customers

PT Perusahaan Listrik Negara (Persero) or PLN revealed the number of customers receiving electricity discount stimulus extension for the second quarter of 2021 or the period of April-June is relatively the same as before. Although the recipients of subsidies have not changed, the amount of budget issued by the government has changed.

Tohari said that in the second quarter of this year the number of electricity subsidy recipients as many as 30 million customers. However, it does not close the possibility that the number could increase but not significantly.

"Stimulus is given to MSMEs and households, the number of 30 million customers. The number is relatively fixed, or even if it goes up a little bit, it's because there are new pairs of electricity", he said in a virtual discussion, Wednesday, April 14.

Tohari explained that the number of customers is relatively the same because the stimulus extension remains targeted at the group that had previously been given stimulus from 2020 to the first quarter of 2021. The difference is only in the value of the discount.

Tohari said that trimming the amount of electricity discount stimulus will reduce the burden of government-borne funds. In the first quarter, the budget for electricity discount stimulus to household customers and MSMEs reached IDR 4.6 trillion.

"The rupiah value is reduced if it used to be IDR 4.6 trillion, it becomes IDR 2.3 trillion because 50 percent of subsidies are cut", he explained.