Energy subsidy to given directly to PLN, Pertamina consumers
Saturday, April 4 2020 - 09:15 PM WIB
The government has agreed to provide fuel and electricity subsidy directly to lower-income group of consumers, instead of granting the subsidy through the state-owned utility company PT Perusahaan Listrik Negara (PLN) and state-owned energy company PT Pertamina.
State-Owned Enterprise Minister Erick Thohir made the announcement on Friday (03/04) after holding a meeting with Finance Minister Sri Mulyani Indrawati and Minister for Energy and Mineral Resources (MEMR) Arifin Tasrif.
Previously, the fuel and electricity subsidy was given to the people through PLN and Pertamina.
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He said the purpose is to ensure that the subsidy is more transparent and that the two companies can focus on their corporate activities.
In the past, subsidy for fuel and electricity was granted by the government to PLN and Pertamina through the so-called compensation payment. In reality, PLN and Pertamina considered this compensation as income, which could create false impression on both companies' financial reports.
Editing by Roffie Kurniawan