Electricity Stimulus to Ease Burden for Industries

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 256.Pers/04/SJI/2020

Date: 18 August 2020

Electricity Stimulus to Ease Burden for Industries

The government through Ministry of Energy and Mineral Resources (EMR) has provided electricity bill relief stimulus for PT PLN (Persero)'s customers, namely 450 VA and subsidized 900 VA household customers and 450 VA small business and small industry customers. Special for social, business, industry, and special services customers, exemption from minimum billing and exemption from minimum charge/abonement are offered.

One of the industries benefiting from the stimulus is the hospitality industry. According to Secretary of Yogyakarta Regional Governing Body of Indonesian Association of Hotels and Restaurants (BPD PHRI) Herman Tony, when the Corona Virus Disease 2019 (Covid-19) pandemic first spread, PHRI proposed electricity stimulus for the tourism industry.

"The hospitality industry's hope for the electricity subsector was expressed when the Covid-19 pandemic first spread, namely to relieve the minimum billing on active hours, so payment is calculated based on real use," said Herman in a webinar titled Electricity Bill Relief Stimulus held on Tuesday (18/8).

The Covid-19 pandemic has indeed made the tourism industry, including hotels and restaurants, enter 'apparent death' condition. This industry, according to Herman, was hit first, but almost certainly it is the last to recover.

"Therefore, the tourism sector hopes the government will issue policies that will keep tourism from 'sleeping' too long, undoubtedly under very strict health protocol," said Herman.

Now that the electricity bill relief is in effect, Herman admits the stimulus will ease the burden felt by businesses, especially in the hotel and restaurant sector.

"We'd like to thank the government for answering our hope, through the electricity cost relief stimulus. We believe this stimulus will ease the burden felt by businesses, especially in the hotel sector," said Herman.

Additionally, Herman puts forward another proposal by PHRI to the government and PLN about businesses wanting to quit being premium customers of PLN or those wanting to have temporary power reduction.

In response to the proposal, Director of Electricity Business Fostering Hendra Iswahyudi said his directorate will facilitate the discussions between businesses and PLN.

"Cases such as power leave (temporary suspension of service), temporary power reduction, these can be discussed with PLN and we're ready to facilitate. We'll consider this proposal, we're ready to facilitate discussions with PLN; we'll discuss with PLN about the details, from both the regulation aspect and the economic aspect," stressed Hendra.

On the same webinar, Chairman of Indonesian Float and Safety Glasses Association (AKLP) Yustinus Gunawan expressed his appreciation for Ministry of EMR for issuing the electricity tariff relief stimulus for Micro, Small, and Medium Enterprises (MSME). Yustinus also expressed AKLP's hope that the government will simplify the electricity tariffs for industries, namely by applying a single industry tariff for customers subscribing to a power of more than 3,500 VA, whose power is supplied by PLN only, and who will be charged usage volume but not any other charges.

"The government has provided quick and strategic stimulus for MSME. We hope the stimulus will be offered to larger industries, too. We highly appreciate webinars such as this one, because it enables us to obtain more complete and comprehensive information. Most importantly, we appreciate the government's speed in accommodating and giving enlightenment for our operation. We'll contact Ministry of EMR about the follow-up (to the association's proposal). With openness and speed, I believe we can work together towards our country's economic recovery," said Yustinus. (IY)

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

Agung Pribadi (08112213555)

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