Electricity Relief Stimulus to Turn National Economic Wheel

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 255.Pers/04/SJI/2020

Date: 18 August 2020

Electricity Relief Stimulus to Turn National Economic Wheel

Ministry of Energy and Mineral Resources (EMR) has provided electricity bill relief stimulus for PT PLN (Persero) customers, namely for 450 VA and subsidized-900 VA household customers as well as 450 VA small business and small industry customers, minimum billing waiver and minimum charge/abonement waiver for social, business, industry, and special services customers. Most of the stimulus has been given since April 2020 and will continue to be given until December 2020.

"The aid is aimed at both easing the burden felt by our fellow citizens who are most impacted by the pandemic and turning the national economic wheel," said Director General of Electricity of Ministry of EMR Rida Mulyana in a webinar titled Electricity Bill Relief Stimulus held on Tuesday (18/8).

Rida said PLN's customers receiving the stimulus number 33.64 million, consisting of 31.88 million household customers subscribing to 450 VA and subsidized 900 VA plans, 501 thousand small business customers subscribing to 450 VA plan, and 433 thousand small industry customers subscribing to 450 VA plan. Additionally, as many as 1.26 million customers from social, business, industry, and special services groups receive the stimulus in the forms of exemption from minimum billing and from minimum charge or abonement.

"The number of PLN's customers assisted by the stimulus is recorded at 33.64 million. To carry out the stimulus, an estimate of Rp15.4 trillion of state fund is needed," Rida added.

On the same occasion, Director of Electricity Business Fostering Hendra Iswahyudi explained the electricity consumption which once dropped at the end of 2019 to early 2020 due to the Covid-19 pandemic has now picked up, starting in June 2020.

"At the end of 2019 until early 2020, consumption dropped, in March-May plummeted, and now it has slowly picked up, to about 20.18 TWh in July 2020. Consumption has rebounded quite well. Hopefully, with the government stimulus, consumption trend will be on the increase because consumption is now above its psychological threshold, above 20 TWh. This is good news for us," said Hendra.

Hendra also said that the electricity consumption in July 2020 grew by 0.51% compared to consumption in the same period in 2019. Consumption by the household subsector grew significantly by up to 10.08%, while consumption by the business, industry, and social subsector shrank compared to that in July 2019.

"Unlike the economic condition which tends to move towards the negative, electricity use is inching towards the positive," said Hendra.

Hendra also asked PLN to maintain its service quality although the company's customers receive stimulus in the form of discounted tariffs.

"Based on the assignment from Minister of EMR, although discount is offered, the state is present in electricity provision; thus, PLN must not be caught off guard. PLN must give the best services, services that meet the set quality level. This has become our concern," said Hendra.

In line with Hendra, PLN's EVP of Customer Marketing and Service Edison Sipahutar admitted his company is developing an information system that will enable customers to check the amount of electricity stimulus they are entitled to. The system is expected to be immediately accessible.

"PLN is developing an information system for checking stimulus amount. Actually, the system is available via PLN's intranet; if needed, customers can call Contact Center 123 to find out the amount of stimulus they can get," Edison said. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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