Electricity subsidy drops significantly

Realized electricity subsidy in the first semester of this year dropped more than half compared to the corresponding period of last year after the government removed subsidies for several group of consumers, Bisnis Indonesia reported on Thursday.

The paper quoted President Director of state-owned electricity company PLN, Sofyan Basir as saying that realized subsidy in the first six months of this year reached Rp 27.42 trillion, down by 52.50 percent from Rp 57.73 trillion in the same period of last year.

Sofyan said that the drop in the subsidy was a result of the government?s policy to remove subsidies for 12 consumer groups. In addition, efficiency programs including the fuel conversion by some power plants to cheaper coal from diesel fuel also helped.

Total subsidy for next year is estimated at Rp 50 trillion including Rp 10 trillion of carry over from last year. (*)