The Ministry Of Energy And Mineral Resources Gave An Explanation About The Elimination Of 450 VA Electricity

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) straightened out the news regarding the removal of 450 VA electricity for the poor proposed by the DPR RI Budget Agency (Banggar).

The Head of the Communications, Public Information Services, and Cooperation Bureau of the Ministry of Energy and Mineral Resources, Agung Pribadi, said that the removal and transfer of power from 450 VA to 900 VA was solely to make the electricity subsidy more targeted.

"The transfer proposal still requires more detailed studies and discussions including cost and benefits analysis, so it must be ensured that the plan does not burden the customers who are targeted," said Agung Pribadi in a written statement, Wednesday, September 13.

According to Agung, current electricity subsidies are enjoyed by 450 VA and 900 VA household customers who are included in the Social Welfare Integrated Data (DTKS).

Of the approximately 24.3 million 450 VA customers, around 9.5 million are included in DTKS.

Of the 14.8 million customers of 450 VA non-DTKS, a survey has now been conducted for 12.2 million, and it generates around 50.1 percent who are entitled to receive subsidies, and about 49.9 percent or 6.1 million are suspected to be off-targeted.

"This figure has the potential to increase until the survey is carried out in its entirety," he added.

In the Government Work Meeting and Banggar of the DPR RI, it was decided that the electricity subsidy budget ceiling for the 2023 budget year would be IDR 72.58 trillion.

The amount of electricity subsidy is set on the assumption that the exchange rate is IDR 14,800 per US dollar and ICP 90 US dollars per barrel.

"The policy of electricity subsidy in accordance with the Financial Note of the 2023 RAPBN mandates that electricity subsidies are provided only for the eligible group, electricity subsidies for households are given right on target for poor and vulnerable households, and encourage the development of new and more efficient renewable energy," he concluded.