Indonesia Energy Ministry: Government Extends Electricity Program Stimulus Until December 2021

The government has decided to extend the electricity program stimulus in the form of discounted electricity rates, implementation of 50 percent exemption or subscription fees, and exemption from the application of the 50% minimum account requirement until the fourth quarter or until December 2021. Director General of Electricity, Ministry of Energy and Mineral Resources, Rida Mulyana, Monday (19/7), said the extension of the electric stimulus was carried out to ease the burden on the community during the Emergency Community Activity Restriction (PPKM) period.

“The government has decided to continue the electricity program stimulus until the fourth quarter of 2021 with the provisions as implemented in the second quarter and third quarter of 2021,” said Rida.

The extension of the electricity program stimulus is a follow-up to the statement of the Minister of Finance of the Republic of Indonesia Sri Mulyani at the Press Conference on the Evaluation of Emergency PPKM Implementation, Saturday (17/7). In the press conference, Sri Mulyani said that the electricity program stimulus would be extended until the end of 2021.

The government through the Ministry of Energy and Mineral Resources has instructed PT PLN (Persero) to extend the implementation of the electricity program stimulus in the fourth quarter of 2021, with the following mechanism:

1. Extension of the implementation of PT PLN (Persero) electricity tariff discounts for Household, Business and Industrial Customers is carried out with the following conditions:

a. Customers for household 450 VA power (R1/TR 450 VA), small business 450 VA power (B1/TR 450 VA) and small industry 450 VA power (I1/TR 450 VA):

1) Regular (Postpaid)

:

electricity bills are given a discount of 50% or free (use fees and load fees);

2) Prepaid

:

given a discount on electricity rates for token purchases of 50%;

b. Subsidized 900 VA power household customers (R1/TR 900 VA):

1) Regular (Postpaid)

:

electricity bills are given a discount of 25% (usage fees and load fees);

2) Prepaid

:

given a discount on electricity rates for token purchases of 25%;

2. Exemption from the application of the minimum account provisions of 50% for PT PLN (Persero) customers whose electricity consumption is below the minimum account provisions (40 hours on), applies to:

a. Social class customers with power 1,300 VA and above (S-2/TR 1,300 VA to S-3/TM > 200 kVA);

b. Business Class customers with a power of 1,300 VA and above (B-1/TR 1,300 VA to B-3/TM > 200 kVA); and

c. Customers of the Industrial Group with a power of 1,300 VA and above (I-1/TR 1,300 VA to I-4/TT, 30,000 kVA and above);

and customers pay according to the use of electrical energy;

3. Exemption from the application of the minimum account provisions of 50% for customers of the Special Service Group according to the Electricity Sales and Purchase Agreement (SPJBTL);

4. Exemption from 50% of the burden or subscription fee, applies to:

a. Social class customers with 220 VA, 450 VA and 900 VA power (S-1/TR 220 VA to S-2/TR 900 VA);

b. Business Class customers with 900 VA power (B-1/TR 900 VA); and

c. Industrial Class customers with 900 VA power (I-1/TR 900 VA);

The budget realization plan for the provision of electricity program stimulus in the third and fourth quarters of 2021 is around Rp4.97 trillion, namely in the third quarter of around Rp2.43 trillion for 26.82 million customers and in the fourth quarter of around Rp2.54 trillion for 27.12 million customers. The realization of the first semester of 2021 budget reached Rp6.75 trillion for 32.90 million customers. Thus, the total budget needed for the provision of electricity program stimulus until the fourth quarter of 2021 is around Rp. 11.72 trillion (tariff discount of around Rp. 9.46 trillion and exemption of minimum accounts, expenses and subscriptions of around Rp. 2.26 trillion).

PLN is expected to prepare a mechanism for socialization and consumer complaints regarding the extension of this electricity program stimulus. PLN is also expected to make efficient use of electric power and maintain the quality of services provided to consumers.

In addition to providing social protection through the extension of the electricity program stimulus, during this Emergency PPKM the Ministry of Energy and Mineral Resources and PLN have also established the Covid-19 Emergency Alert Post for the Electricity Subsector. This Covid-19 alert is prioritized for reporting on electrical conditions and the reliability of the supply of vital objects to support health services, such as the oxygen producer industry, Covid-19 referral hospitals and other supporting facilities.

Rida said that the extension of the electricity program stimulus is proof of the country’s presence in difficult times. “It is hoped that people will still be able to wisely consume electricity during Emergency PPKM, such as saving electricity and increasing electricity safety,” he concluded.