Not Only Electricity For The Rich 3,000 VA, The Cost Of Electricity For Government Agencies Is Also Guaranteed To Increase

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) stated that the determination of the increase in electricity rates also applies to all government agencies in Indonesia.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said that this step also complements the previous provision which stated that the adjustment of the stun fee would be imposed on customers of 3,000 VA and above.

"The government remains committed to improving targeting accuracy (electricity subsidies), one of which is through the implementation of tariff adjustments for certain household customers and all government groups," he said during a discussion on the 2023 RAPBN with the DPR Banggar at the Senayan Parliament Complex, Jakarta on Tuesday, June 14.

According to Febrio, the strategy implemented by the government is in line with the high budget for subsidies and compensation for the 2022 period as a consequence of the role of the state budget as a shock absorber.

"This is to protect people's purchasing power and maintain the momentum of economic recovery," he said.

For information, in the 2022 state budget law, the value of energy subsidies (electricity, fuel, and LPG) is Rp. 233.4 trillion, equivalent to 1.4 percent of gross domestic product (GDP).

However, in line with the increase in commodity prices, the government recalculated by increasing the allocation of energy subsidies to Rp443.5 trillion or around 2.5 percent of GDP.

The latest outlook is in line with the use of the ICP (oil price) reference of 100 dollars, where previously (the 2022 State Budget Law) the ICP was set at 63 dollars.

"The price of fuel has not been adjusted since 2016 and electricity rates have not been adjusted since 2017," said Sri Mulyani's subordinate.

"Even though it effectively acts as a shock absorber in the midst of high commodity prices, the subsidy and compensation policy must still pay attention to the health of the state budget," closed Febrio.