2014-2016, Electricity Subsidies Decreased by 41 Percent

The government remains committed to reallocating energy subsidies to strategic programs that improve the welfare of the people. One of these is reducing electricity subsidies. Data from the Ministry of Energy and Mineral Resources (ESDM) in the 3-Year Report of the Joko Widodo-Jusuf Kalla Government shows that electricity subsidies showed a downward trend from 2014-2016.

In 2014, electricity subsidies reached Rp 99.3 trillion, and in 2016, this decreased by more than 41 percent to Rp 58.04 trillion. Meanwhile, the realization of electricity subsidies up to the first half of 2017 amounted to Rp 20.27 trillion out of a target of Rp 45 trillion.

However, the government did not increase electricity tariffs until the end of 2017 in order to maintain growth amid a slowing economy. For information, 23.17 million 450 VA household customers continue to receive subsidies. In addition, 6.54 million poor and underprivileged 900 VA household customers also continue to receive subsidies.