DPR Asks for Non-PLN Electricity Subsidy

Jakarta, InfoPublik - The government and the House of Representatives (DPR) agreed on electricity subsidy in the State Budget Revision (APBN-P) in 2016 at Rp 50.66 trillion.

Electricity subsidy will increase by Rp12.28 trillion from the State Budget 2016 at Rp 38.38 trillion. The increase in electricity subsidy is due to the delay on the adjustment of electricity rates for customers of 900 VA.

Data from state-owned electricity company PLN stated that there were 22,639,000 R1- 900 VA tariff subscribers at the end of 2015. Meanwhile, the integrated data The National Team for Alleviating Poverty (TNP2K) data of 2015, stated that there were only 4,016,948 poor households eligible to receive subsidized electricity of 900 VA.

House of Representatives Commission VII Vice Chairman Syaikhul Islam Ali deplored the length of the data validation and updating process of household eligible for subsidy.

According to him, the government and PLN should sit together to resolve this matter to avoid electricity subsidy increase. “I’ve stated from the beginning, it is not possible to combine data from TNP2K with PLN’s customer data. The process would take twice effort and consume too much time. As the result, electricity subsidy is very high,” said Shaykh in a press statement received by InfoPublik in Jakarta, on Monday (6/27).

He demanded that the government and PLN to use the data from TNP2K as the database of electricity subsidy for low income households. He also proposed that the old system of electricity subsidy to be replaced by a vouchered-direct subsidy.

"If we want a simple and effective process, use the data from TNP2K to give direct electricity subsidy in the form of vouchers. It will be more effective than the subsidy model being implemented,” said Syaikhul.

“If necessary, the electricity subsidy should not be distributed through PLN. Give electricity vouchers for the poor households,” he concluded. (Translator: Erik Limantara)