Gov’t: Electricity Subsidy to Continue in 2021
Date 2 Januari 2021
The Indonesian Government has ensured that electricity subsidy for the people will continue in 2021.
“In accordance with the President’s directive, we are, at the Committee for COVID-19 Handling and National Economic Recovery (KPCPEN), which includes Coordinating Minister for Economic Affairs Airlangga Hartarto and Minister of Finance Sri Mulyani, as recently held a meeting with Minister of Energy and Mineral Resources on state-owned electricity company PLN, so that it will continue to provide its services to people in need,” Minister of State-Owned Enterprises and Chairman of KPCPEN Erick Thohir stated through a written statement, Saturday (02/01).
For the record, the subsidy is part of the Government’s efforts to recover the economy due to the COVID-19 pandemic.
According to Erick, subsidized electricity costs will still apply in accordance with the system that has been in effect before. Customers with 450 VA power will get a full fee waiver or free. This shows the Government’s support for economically vulnerable communities.
The 50% electricity cost subsidy, he added, refers to customers with 900 VA power. This subsidy extension takes effect in the first quarter of 2021, namely January to March. The Government will then review for the needs of further extension.
In addition, the Government also stated that all social safety devices will continue to be applied in order to ensure that the COVID-19 handling for health and economic sectors are carried out comprehensively.
“The Government will continue the stimulus program in 2021 for economic recovery and COVID-19 handling, including the procurement of vaccines, cash assistance, interest subsidies, financing for MSMEs, and food security,” he said. (PR of Ministry of SOEs/UN) (FI/LW)