Regional Head Supports Right Targeted Electricity Subsidy Distribution

JAKARTA - The government imposed a tariff adjustment for medium-sized household customers with a power of 3,500 Volt Ampere (VA) and above on July 1 yesterday.

This step is taken so that the allocation of electricity subsidies can be more on target while maintaining the state's financial condition.

This policy is also supported by regional heads.

The Governor of West Kalimantan, Sutarmidji, assessed that the electricity subsidy is a form of the government's presence in helping and easing the burden of living for the poor.

According to him, this assistance is very important so that they can continue their activities in fulfilling their daily needs.

"I fully support the provision of electricity subsidies that are right on target and in accordance with their designation. So that the benefits can really be felt by the community and quickly increase economic growth and alleviate poverty," he said in an official statement, Wednesday, July 6.

Support was also expressed by the Regent of Banyuwangi, Ipuk Fiestiandani.

Ipuk assessed that the steps to revamping the special electricity subsidy only for the underprivileged groups were the right ones. Moreover, in principle, subsidies from the state should be enjoyed by people who cannot afford it in order to create the principle of justice.

"The tariff adjustment is carried out in order to realize a fair electricity tariff, namely an adjustment in order to correct those that are not on target," said Ipuk.

In line with Ipuk, the Regent of Pacitan, Indrata Nur Bayuaji said that the selection of a class of customers capable of adjusting the electricity tariff was also correct.

This is nothing but to maintain the purchasing power of the lower middle class, especially the impact of the pandemic which has eroded people's income.

"We will fully support and oversee this government's policy, as well as help provide understanding or information that we know to the general public that not all people affected are only wealthy households and government tariff groups," Indrata added.

Even though there is an adjustment in electricity rates for the affluent groups, it does not necessarily make PLN slow down its steps in ensuring a prime electricity supply for the community.

PLN President Director Darmawan Prasodjo emphasized that PLN will continue to provide the best service for all customers.

"We remain committed to providing reliable access to electricity for all people. No one left behind is our principle. Equal energy for all people," said Darmawan.

Darmawan asserted, since 2015 even the government has had to bear the burden of the difference between the electricity tariff and the cost of providing electricity (BPP) through the state budget.

It is known that the government has disbursed electricity subsidies of Rp. 243.3 trillion and compensation of Rp. 94.17 trillion from 2017 to 2021.

"However, during that period, well-off community groups, namely household customers of 3,500 VA and above also received government assistance," said Darmawan.

At least, said Darmawan, the total compensation for the category of capable customers in the 2017-2021 period reached IDR 4 trillion.

This condition is exacerbated by the global turmoil that has resulted in an increase in the cost of electricity supply (BPP). Each increase in the price of Indonesian crude oil (ICP) by 1 US dollar results in an increase in BPP of Rp. 500 billion.

"So that in 2022 the government is projected to prepare compensation of Rp. 65.9 trillion if there are no enforcement steps," said Darmawan.

This year, the government is still providing support for subsidies and compensation to customers of Rp. 125 trillion, which consists of subsidies of Rp. 62 trillion and compensation of Rp. 63 trillion.

Darmawan said that PLN ensured that this electricity subsidy scheme would continue to be improved.

PLN continues to do data matching and data accuracy so that the allocation of subsidies and compensation can be right on target.

"So that the APBN budget in the future can continue to be allocated for programs that are wider on the principle of benefit and social justice," concluded Darmawan.