The rich can still be Electricity Subsidy of Rp 400/Kwh

Jakarta -the Government propose to PARLIAMENT next year to raise Electricity Tariffs (TTL) about 10% with dicicil every 3 months. This is done, because rich people are still enjoying electricity subsidies to Rp 350-400 per kWh.

So delivered by coordinating Minister for Economy Hatta Rajasa in his residence, Widya Chandra Complex, Jalan Gatot Subroto, Jakarta, Monday (19/8/2012).

"Today, with the current power rates, countries still subsidize everyone including the rich Rp 400 per kwh. Meaning of the selling price of electricity to generate electricity, investment still difference of Rp 400 per kWh, "Hatta said.

Hatta said, with rising electricity rates is also to improve the management of electricity prices. Electricity rates rise, then the electric subsidy will be reduced in the BUDGET, it also improves the ability of PLN and private power plants to produce electricity.

"The reason, with the difference in the price of electricity at present, far too much of the value of the investments issued by electricity rates now," he said.

In addition to rising electricity rates, said Hatta, the figure will also increase the electrification of electric current of about 70%.

"With electricity rates raised, stimulation arises PLN and IPP (private-owned power plant) to produce electricity and anesthetic on increasing electrification," he said.

However hopes of Hatta, electricity rates are up 10% in a year proposed for everyone though, but still distinguishable again for the bottom and middle/upper.

"So the rise is not damning tarid electric poorer, reducing the subsidies and remove secondary electricity to the top of the subsidy, where we proposed increases average about 10% next year," he said.

With the reduction of subsidies on electricity, said Hatta, penghematannya could be redirected to capital expenditures are expected to reach $ 200 trillion.

"This BUDGET to 2013 we qualified, capital expenditures to upgrade the infrastructure of the country, is not possible if investments continue to grow but its dormant," he said.

Moreover, said Hatta, infrastructure development such as the Harbour, the road later, airports, and other no longer comes from the STATE BUDGET, but it could also be financed directly by the STATE-OWNED ENTERPRISES.

"STATE-OWNED ENTERPRISES will have a major role in the development of infrasturktur, because the next year every construction of airports, ports and roads do not have to use BUDGET money, get enough of STATE-OWNED ENTERPRISES could also even hired private investment in STATE-OWNED ENTERPRISES, thus, private entrance, too," he asserted.

(rrd/dnl)