Govt, House agree to increase electricity subsidy to Rp 66.33 trillion

The government and the House of Representatives (DPR) have agreed to increase the budget for the electricity subsidy to Rp 66.33 trillion in the revised 2011 state budget from Rp 40.7 trillion.

The agreement was made during a hearing between the Energy and Mineral Resources Ministry and the House?s Commission VII on the revision of the 2011 state budget on Friday.

The legislators approved the government?s proposal to increase the electricity subsidy but they asked the government to act more actively in finding additional gas supply for electricity company PLN so that it would be able to reduce the use of oil, whose prices are three times higher than gas.

The House members urged the Energy and Mineral Resources Ministry for example to speed up the construction of a floating storage and regasification unit (FSRU) so that PLN will have more alternatives to get gas supply.

In addition, the House members also asked the government to work to gather with PLN to ensure that all the power plants being built under the first stage of the 10,000-megawatt power plant development program could be optimally operated. (*)