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Govt extends electricity relief to June but halves discounts
The change will reduce electricity relief spending by 50 percent qtq to Rp 2.3 trillion in the April-June period even though the number of recipients has risen by 0.8 percent to 33.9 million over the same period.
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A resident checks his electricity meter at a low-cost apartment building in Bendungan Hilir, Central Jakarta, on Tuesday. (JP/Seto Wardhana)
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usinesses and small homes in Indonesia are to enjoy another quarter of discounted electricity bills until June but the discounts will be half of those of previous quarters to minimize the burden on state coffers.
Energy and Mineral Resources Ministry Electrification Director General Rida Mulyana said on Tuesday that implementing the relief would cost Rp 2.3 trillion (US$160.7 million) between April and June. The relief would be implemented by state-owned electricity monopoly PLN.
Of the total budget, Rp 1.88 trillion will be spent on discounting the monthly power bills of 32.75 million small homes, businesses and industries while Rp 421.7 billion will be spent on halving monthly electricity subscription fees for 1.24 million businesses.
“With the recovery of the national economy, we’ve decided to give small homes, businesses and industries in the 450 volt ampere [VA] category a 50 percent discount and not a 100 percent discount anymore,” said Rida during a virtual press conference.
Read also: Govt extends electricity discount until March
The government has been giving 100 percent power bill discounts for homes and businesses in the 450VA category, the lowest out of six power-usage categories under existing regulations, since the incentive was launched in early 2020.
Rida said the government would also reduce the discounts for homes in the 900VA subsidized category, the second-lowest category, from 50 percent in previous quarters to 25 percent in April-June period.
