Govt prepares new electricity subsidy system

Tuesday, March 27 2001 - 04:00 AM WIB

The Ministry of Energy and Mineral Resources is currently preparing a new mechanism of channeling basic electricity subsidy that would especially target low-income customers.

Director General of Electricity and Energy Usage Luluk Sumarso said in Jakarta on Saturday (March 24) that the new electricity subsidy system would differ a lot from the current system, that does not reflect fairness to the poor.

In the new system, Luluk said, subsidy is channeled directly to those who really need them in the form of discounts when they pay their electricity bills to state electricity company PT PLN, which then later charges the government through the Ministry of Finance for the subsidy fund.

Those entitled to the subsidy could be household electricity consumers, commercial electricity users, social facilities, industrial firms or even transportation companies. (*)

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