TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said that he has not received any information on the government's plan to increase electricity tariff. However, Luhut did confirm that the government had reduced the amount of electricity subsidy.
"I don't know, I never predicted [the tariff increase], but yes there is a subsidy reduction," Luhut said at his office on Thursday, October 27, 2016.
Luhut admitted that the government is about to reduce electricity subsidy for customers with 900 watt electricity.
It is reported that funds allocated for electricity subsidy in the 2017 State Budget was lower than the amount stated in the 2016 Revised State Budget. In the 2017 State Budget, funds for electricity subsidy are set at Rp 160.1 trillion, while in the 2016 Revised State Budget the amount was set at Rp. 177.7 trillion.
The largest cutback will be applied on energy subsidy, which will be reduced from Rp 94.35 trillion in the 2016 Revised State Budget, to Rp 77.3 trillion in the 2017 State Budget.
DIKO OKTARA
