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January-February 50% electricity discount costs govt Rp 13.6t: Sri Mulyani
There were 71.1 million and 64.8 million customers who received the discount in January and February, respectively.
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A technician from state electricity company PLN stands atop a transmission tower on Dec. 27, 2023, during regular maintenance work in Palu, Central Sulawesi.
(Antara/Basri Marzuki)
T
he government spent Rp 13.6 trillion (US$ 818.6 million) to fund 50 percent discounts on electricity bills for eligible residential subscribers in the first two months of 2025, according to the Finance Ministry.
The discount scheme was initially designed as part of a stimulus package to soften the impact of a value-added tax (VAT) rate hike from 11 percent to 12 percent.
The government decided to scrap the planned increase hours before the policy took effect on Jan. 1 but kept the stimulus package rollout, including the electricity discounts for capacity subscriptions of up to 2,200 volt-amperes (VA) for small and medium houses.
“The total temporary realization of the budget for providing electricity discounts amounts to Rp 13.6 trillion,” Finance Minister Sri Mulyani Indrawati said in a statement on Instagram on Monday.
She explained that 71.1 million and 64.8 million customers received the discount in January and February, respectively, claiming that the move has succeeded in keeping inflation low.
“This is part of the government’s efforts to protect people's purchasing power. Hopefully, with public consumption maintained, economic growth momentum can also continue,” she said.
Read also: Electricity subsidies keep consumer prices subdued in February
