Electricity Subsidies for Poor and Vulnerable Households Affected by Covid-19

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 228.Pers/04/SJI/2020

Date: 1 July 2020

Electricity Subsidies for Poor and Vulnerable Households Affected by Covid-19

The government has issued a policy to give electricity subsidies for 6 months (April-September 2020) to the poor and vulnerable, namely households subscribing to R.1/450 VA and R.1/900 VA electricity plans. This policy sets out that households subscribing to R.1/450 VA plan receive a 100% discount, while those subscribing to subsidized R.1/900 VA receive a 50% discount.

"The Covid-19 pandemic has created widespread impacts on the society, especially on the economic side. Therefore, in line with the directive of the President of Republic of Indonesia, the government or in this case Ministry of Energy and Mineral Resources (EMR) has issued a policy to assist the poor and vulnerable who are impacted by the pandemic," said Director General of Electricity of Ministry of EMR Rida Mulyana in a press conference of the Indonesia's Covid-19 Task Force about Social Security through Household Electricity Subsidies in Jakarta on Wednesday (1/7).

On this occasion, Rida explained that the average electricity usage of poor households (R1/450 VA plan) is 85.36 kWh/month, while the electricity selling price from PLN is Rp415/kWh. Poor households will receive a subsidy of Rp1,052/kWh or Rp89,799/month.

"Ministry of EMR has given instructions to PT PLN about the mechanism to give tariff discount. Regular/post-paid households subscribing to R.1/ 450 VA will be freed from lighting charge and minimum charge, while prepaid households subscribing to R.1/450 VA will be given free electricity tokens which value equals the highest consumption in the last 3 months," continued Rida.

Regular/postpaid households subscribing to subsidized R.1/900 VA pay 50% of the lighting charge and minimum charge, while prepaid households subscribing to subsidized R.1/900 VA will be given free electricity tokens which value equals 50% of the highest consumption in the last 3 months.

Based on Integrated Social Welfare Database (DTKS), electricity subsidy receivers are the bottom 40% of the poorest Indonesians. Currently, the number of R.1/450 VA customers is about 23.9 million and subsidized R.1/900 VA customers 7.3 million.

In addition, Rida went on, to protect 455,070 small businesses subscribing to B.1/450 VA, mostly carrying on businesses in agriculture and fishery, and 373 small industries subscribing to I.1/450 VA, the government has also given a 100% discount for 6 months (May-October 2020).

Rida said the assistance is temporary and a proof of state presence, particularly for people who are most affected by the pandemic.

"The government has also ensured there won't be any electricity tariff hike during the Covid-19 pandemic; in fact, the electricity tariffs have not changed since 2017," said Rida.

Moreover, complaints about electricity subsidies can be made via the 'PEDULI' application, which can be accessed via the website by village officers or directly via mobile application downloadable through the Play Store. This application is listed in the TOP 99 of Public Service Innovations Competition (KIPP) held by Ministry for State Apparatus Empowerment and Bureaucratic Reforms.

"Until May 2020, we've received over 300 thousand complaints, and we've followed up more than half because these people are entitled to the subsidy," Rida concluded. (IY)

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

Share This!