Government raise electricity subsidy to Rp 42.6 trillion

Government raise electricity subsidy to Rp 42.6 trillion

PLN president commissioner Al Hilal Hamdi said the government’s plan to raise the electricity subsidy to Rp 42.6 trillion from Rp 29.8 trillion allocated previously would not only be insufficient but also stretch the company’s financial resources. PLN Ideally need Rp 70 trillion (USD 7.5 billion) in subsidies this year following the change in the state budget’s oil price assumption to USD 80 per barrel from USD 60 per barrel. (Jakarta Post-02/06)

Kompas (02/06) report PLN would seek loans from local lender if the subsidy allocation from the government cannot cover the operational cost. The company also open to seek funding on the bond market.

Other option are PLN will start electric efficiency program such as distributing 51 million saving energy lamp and rotating blackout, Kontan (02/06) report.

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