The Minister Of Energy And Mineral Resources Ensures No Electricity Subsidies For 900 VA And 1,300 VA Users

Illustration. (Photo: Ministry of Energy and Mineral Resources)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) ensures that the government will only provide electricity subsidies to the poor. Meanwhile, the affluent group still has to pay for electricity according to a predetermined rate.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said, the tariff class of R.1 / 900 VA for wealthy households in 2020 will not receive subsidies. In addition, customer households of R.1 / 1,300 VA are also in the wealthy household group so that they do not receive subsidies.

"This household group generally has a lot of valuable assets, electronic devices such as televisions, refrigerators, and also AC facilities. So the government provides only R.1 / 450 VA and also R.1 / 900 VA cannot afford it," he said. "he said, in a virtual working meeting with Commission VII, Monday, May 4.

Based on data from the Ministry of Energy and Mineral Resources, there are currently 38 classifications of electricity rates. Of these, there are 25 subsidized tariff groups and 13 non-subsidized tariff groups. Of the subsidized tariff groups, there are poor and vulnerable groups of poor households, namely the R.1 / 450 VA and R.1 / 900 VA groups who are unable to pay for electricity.

"The total for R.1 / 450 VA is 23.9 million subscribers and for those for the R.1 / 900VA group who are poor, totaling 7.3 million subscribers," he said.

Meanwhile, said Arifin, for other household tariff groups that do not receive subsidies, namely R.1 / 900 VA for wealthy households with a total of 2.3 million subscribers and R.1 / 1300 VA for around 11.6 million subscribers.

"So the total number of household customers is around 70.1 million," he explained.

Arifin said, to help the poor and vulnerable to poverty due to the COVID-19 pandemic, the government has made a policy to provide discounts on electricity bills for three months. Valid April to June, where R.1 / 450 VA get a 100 percent discount, and 900 VA get a 50 percent discount.

The consumption of electricity for households receiving the 450 VA subsidy averaged 85.36 kilo watt hour (kWh) per month with a PLN selling price of IDR 415 per kWh. These households receive subsidies with a subsidy of IDR 1,052 per kwh or receive IDR 89,799 per month of subsidies.

"The recipients of electricity subsidies are the poor and vulnerable to poverty. Based on the integrated data of the Ministry of Social Affairs, the recipients of electricity subsidies are the lowest earners of 40 percent of the Indonesian population," he said.

Not only the poor, Arifin said, the government also provides discount on electricity bills for small business customers B.1 / 400 VA and B.1 / 450 VA. Similar to household users, the government bears 100 percent.

"The government has also given a tariff discount of 100 percent for 6 months to be able to maintain its business and also to protect its small industries," he said.