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Indonesia’ electricity subsidy keeps swelling to IDR93 trillion

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JAKARTA: Indonesian government recorded electricity kept increasing during the last 11 years, as it jumped 24 times from IDR3.9 trillion in 2000 to IDR93 trillion in 2011.
 
Deputy Finance Minister Mahendra Siregar said the government predicts electricity subsidy this year can break to IDR100 trillion.
 
From year to year, he added, the government’s electricity subsidy tends to increase. This year the government allocated IDR65 trillion for electricity subsidy.

"However, the realization can be more than IDR100 trillion," he said in a seminar initiated the policy of healthy and equitable electricity subsidy through a service level agreement, Wednesday (18/07/2012).

Last year, the government allocated IDR45 trillion for electricity subsidy but the budget increased two folds, which reached IDR93 trillion.
 

According to Mahendra, the increase was caused by changes in fuel prices. In addition, it is compounded by the limited supply of coal and gas which are supposed to replace the fuel for generators that use by state-owned electricity company, PLN. (T03/aph)

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