The government will remove electricity subsidies to big corporations in
order to reduce State Budget (APBI) spending. Jarman, Director General of Electricity at the Ministry
of Energy end Mineral Resources, Wednesday (2/6/2013) said that hie party will eliminate electricity
subsidies to industry group. This policy
will be done gradually. This matter has been
discussed as long-term subsidies reduction scheme.
But, the government could not make a decision alone. Based on Law No.
30/2009, increase of electricity tariff (TTL) must first be approved by the Parliament before it is
stipulated by the government. Electricity tariff increase is riot implemented every year on certain mesons. “This is based on assessment on consumers’ ability to pay and its impact
on inflation and production cost”, Jarman said.
Quoting data of the Directorate General of Electricity of the Ministry
of Energy and Mineral Resources, electricity subsidies for big industries ID 2013 reaches Rp 19.9 trillion. This figure
represents 25% of total electricity subsidies
budget at Rp 78.63 trillion. There
are 10 biggest receivers of electricity subsidies in 2013. The biggest subsidies received by customers of 450 VA and 900 VA customers reach Rp 41.14 trillion or around 51% of total
subsidies.
450 VA and 900 VA customers comprise majority number of electricity
customers (39.18 million). While, subsidies received by industries of category 12 or 14 kVA to 200 kVA
customers, category 13 or above 200 kVA customers, and category 14 or above 30,000 kVA customers reach
Rp 19.95 trillion or 25,4% of total subsidies. Total industrial customers reach 4-1,900 customers.
And, for category R1 or 1300 VA capacity customers in 2013 received subsidies
at Rp 5.6 trillion with total customers at 5.8 million, category R1 or 2200 VA capacity receives Rp 3.26 trillion subsidies
with total customers at 1.84 million, and
category R2 of 3500 - 5500 capacity
receives Rp 1.51 trillion with total customers
at 326,000. P3 category or government
institutions received Rp 1.51 trillion subsidies with total customers at 31,000. And, B1/business category or 2200 VA –
5500 VA customers receive Rp 1.08 trillion with total customers at 150,000.
General Chairman of
Association of Indonesian Young Entrepreneurs (Hipmi), Raja Septa Oktohari,
asked the government has to be transparent about grant of electricity subsidies
to industries and the amount of subsidies granted to each industry sub-sector.
Electricity subsidies should be prioritized on young entrepreneurs in order to
given them the opportunity to have high competitiveness.
He believed that subsidies
grant requires a highly careful consideration to make the subsidies reach the
right beneficiary target.
Business News - February 08,2013
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