Minister Promises Well-Targeted Electricity Subsidy

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    TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Sofyan Djalil, said that the electricity subsidy removal for customers subscribing to 450 VA and 900 VA electricity services was aimed at improving the subsidies' targets. According to Sofyan, the subsidy will be directly distributed to proper individual.

    "It won't miss the target because we will distribute the subsidy to customers' electricity accounts," Sofyan said at his office on Friday, June 19, 2015.

    Sofyan said that the scheme would motivate people to use electricity efficiently. Cheap electricity tariff, Sofyan added, would trigger inefficiency.

    Earlier, the government announced a plan to remove the electricity subsidy for customers subscribing to 450 VA and 900 VA electricity services starting from 2016. Jarman, the director general of electricity at the Energy and Mineral Resources Ministry, said the plan was still being discussed with the House of Representatives.

    "We have proposed the amount of the price increase to ease the subsidy," Jarman said.

    TRI ARTINING PUTRI | KHAIRUL ANAM