Greenpeace Slams Coal Association Request for Subsidy

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  • TEMPO.CO, Jakarta - In its latest press release, Greenpeace Indonesia expressed its strong rejection against the plan made by the Indonesian Coal Mining Association (ICMA) to asks for subsidy from the government to support their business.

    "Indonesian coal companies cannot be allowed to get away with this plan," Arif Fiyanto, a senior campaigner for Greenpeace Indonesia stated in the release.

    Previously, the ICMA had issued a press release dated March 7, 2016, which called on the government to pay a surcharge of one percent on the basic cost of Rp 1400/kWh, amounting to a subsidy of about US$230 million per year (Rp. 3 trillion). The Association also hinted at the possibilities of higher percentage (three percent), which would cost the Indonesian taxpayer US$680 million a year (Rp. 8.9 trillion).

    According to the ICMA, the one percent subsidy is necessary to ensure the availability of 15 GW of coal-fired electricity for the national electricity program, while the three percent subsidy would ensure the availability of 40 GW of electricity. In addition, The ICMA argued that failing to pay the subsidy would risk the government of losing its 35 GW national electricity program to foreign companies.