Thursday, 19th October 2017

Government seeks to reduce electricity tariff: Energy minister

16th June 2017 | 9.926 Views
Jakarta (ANTARA News) - Indonesias Energy and Mineral Resources Minister Ignatius Jonan said that the government would seek to reduce electricity tariff for all subscribers to relieve the burden of the people.

"The government has a commitment that there will be no price hike until the end of this year. Instead, we are trying to reduce the tariff, if necessary, for all types of subscribers every three months," Jonan stated, on the sidelines of a visit to Java Bali load dispatching center (P2B) in Depok, West Java, on Thursday.

Jonan noted that the government will continue to seek ways to reduce the tariff by increasing the efficiency of state-run electricity firm PLN.

He assured that the revocation of subsidy for 900 VA subscribers, who no longer deserve the subsidy, has been finalized, and there would be no price hike.

The decision to abolish subsidy for 900 VA subscribers was taken under the parliaments approval, based on the law on state budget 2017.

"Some 4.5 million 900 VA subscribers are still enjoying the subsidy based on TNP2K data (national team for poverty alleviation), while all 450 VA subscribers will still receive the governments subsidy," Jonan remarked.

Revocation of the subsidy is aimed at encouraging equal distribution of electricity to all the villages throughout the country, he added.

A data of the ministry showed that some 2.5 thousand villages are yet to obtain electricity, while 10 thousand other villages could only enjoy a minimum amount of electricity. (*)