Increase In Electricity Tariffs Of 3,500 VA And Above Makes The State Save IDR 3.1 Trillion

Illustration of a resident checking a prepaid electricity meter in Jakarta. (Photo: ANTARA)

JAKARTA - The Director General of Electricity at the Ministry of Energy and Mineral Resources, Rida Mulyana, said the policy of adjusting the electricity tariff for household customers of 3,500 VA and above has an impact on improving the state's financial performance because it saves compensation of Rp. 3.1 trillion.

"We have calculated approximately the burden that can be reduced against the state budget of around Rp. 3.1 trillion or only 4.7 percent of the total compensation that we have to pay this year," Rida said as quoted by Antara, Monday, June 13.

Through the adjustment of electricity tariffs in the third quarter of 2022 for household customers (R2 and R3) as well as the government sector (P1, P2, and P3), the potential for electricity compensation this year is projected to reach Rp62.82 trillion.

The Ministry of Energy and Mineral Resources noted that the largest distribution of compensation came from the industrial sector which reached Rp. 31.95 trillion or 50.9 percent, to households of Rp. 18.95 trillion or 30.2 percent, the business sector of Rp. 10.84 trillion or 17.3 percent, and the rest. government and special services Rp. 1.08 trillion or 1.7 percent.

PLN President Director Darmawan Prasodjo said his party was committed to carrying out government directives to maintain people's purchasing power and maintain the momentum of national economic recovery.

Electricity tariff adjustments are applied to the wealthy so that the distribution of electricity compensation is more targeted.

Since 2017, he said, the government has disbursed electricity subsidies of Rp. 243 trillion and compensation of Rp. 94 trillion.

The total compensation that was mistargeted or enjoyed by the community could reach Rp4 trillion.

Through a tariff adjustment policy that will be implemented starting July 1, 2022, the government seeks to achieve a fair electricity tariff in which compensation is given to the people who are entitled to it, while the public is able to pay the electricity tariff according to the economy.

Darmawan said that the application of compensation was returned to the philosophy of government assistance, which was aimed at small economic communities.