Government to allow BUMDs to manage electricity supply

Minister of Energy and Mineral Resources Sudirman Said stated that the government is preparing a mechanism to allow six local administration-owned companies (BUMDs) in eastern part of Indonesia to manage electricity supply in their respective areas to help accelerate power development in the region, Kontan reported on Friday.

The six BUMDs are located in Papua, West Papua, Maluku, North Maluku, West Nusa Tenggara, and East Nusa Tenggara.

Sudirman, however, said that the policy would not curtail the role of state-owned electricity company PT PLN in developing power plant and supporting facilities in the regions.

?Funding scheme for the development is still being discussed,? Sudirman said, adding that under the plan, the BUMDs can cooperate with private power producers.

He also said that the government would provide subsidy for low income households in the regions to purchase electricity. (*)