Electricity tariffs next year ' Dicicil ' Climb Every 3 months, this is the reason the Government

Jakarta -the Government proposes to the PARLIAMENT on next year's increase in Electricity Tariffs (TTL) per quarter or ' dicicil ' every 3 months. What is the reason?

According to Finance Minister Agus Martowardojo, an increase in electricity rates is done to reduce subsidies on electricity which is not right on target. Saving funds will be allocated to infrastructure through the capital expenditure of the Government.

"With the rise in TTL, can reduce electricity subsidies. With the reduction of subsidies that the Fund be diverted electricity to supplement capital expenditure budget, "said Agus Martowardojo when found in his residence, Widya Chandra housing complex, Jalan Gatot Subroto, Jakarta, Monday (19/8/2012).

Agus said, with increased capital expenditures, then it will also indirectly encouraging economic growth.

"In 2013, assuming an increase in TTL, total subsidies reach $ 316 billion, which comes from the post fiscal risk reserves, reserves changes assumptions and others," he said.

With the increase in electricity rates each quarter, this then there will be a reduction in electricity subsidies amounting to Rp 12 trillion.

"Rp 12 trillion is transferred to another post, i.e. to a capital expenditure of Rp 193 trillion, plus a reduction in subsidies and capital spending could reach Rp 200 trillion more," she said.

Increased capital expenditures will be widely used for the development of the infrastructure that supports the growth of investment in the country.

"So indirectly by increasing capital expenditure budget, then it can be pushed higher economic growth again," he asserts.

Increase in electricity tariffs next year is planned around 10%. But the Government will not raise at once, but gradually would raise every 3 months.

(rrd/dnl)