In 2017, the electricity subsidy was targeted at Rp 44.98 trillion, a 22.5 percent decrease from the previous year. This figure is the result of a reduction in subsidies for 900 volt-ampere (VA) electricity users among affluent households (RTM) by 19 million subscribers. Therefore, only 4.1 million 900 VA electricity users will continue to receive subsidies.
If all 900 VA electricity users, totaling 32.1 million subscribers, continued to receive subsidies at a price of Rp 605 per kWh, the total electricity subsidy in 2017 would have been estimated at Rp 70.6 trillion. Meanwhile, in the 2018 State Budget (APBN), the electricity subsidy is estimated to reach Rp 52.66-56.7 trillion. This amount is higher than this year's.
The government has implemented a gradual adjustment (subsidy reduction) for 900 VA electricity users deemed affluent since January 2017. Therefore, starting in May, affluent household (RTM) 900 VA electricity subscribers were charged a tariff of Rp 1,352 per kWh.
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