Subsidized Electricity Scheme Soon to be Changed


Nadia Maharani, Kartini L. Makmur
 
Plans to change the scheme of subsidized electricity for the public, especially for usage of 450 Volt Ampere (va) and 950va capacity will be executed by the state-owned electricity company PLN immediately.
 
Sofyan Basir, PLN’s President Director, explains approximately 15 million underprivileged citizens should be using subsidized electricity. However, due to the uncontrollable misuse, subsidized electricity is currently used by 44 million people, including the middle and upper class society, cheating on the system to benefit from the government program of subsidized electricity.
 
Mr. Basiradmits PLN’s inability to identify the wealth of its customers, as the company only focuses on the power capacity requested. Due to the issue, Mr. Basir believes that the implementation will be much more effective if subsidized electricity is given based on Prosperous Family Card (Kartu Keluarga Sejahtera – KKS). With such mechanism, even the lower class with power capacity of 1.300va will be able to enjoy subsidized electricity.
 
"There are mistakes both on our part and the policy. Previously, the policy was set on 450va and 950va, regardless whether they are poor or not,” says Mr. Basir.
 
Mr. Basir also said that PLN’s representatives found middle and upper classes using subsidized electricity, despite having luxurious cars and large houses. The trick is by downgrading their electricity capacity and using several transformers. Mr. Basir said these citizens are criminals for using the service they are not entitled to.
 
"It should not be allowed, but the regulation does not state so. If they asked to have a 900va to be installed, as long as those people would pay 600 thousand IDR for installation, then it would be given to them,” states Mr. Basir.
 
Meanwhile, Iwa Garniwa, an energy observer from University of Indonesia (UI) believes the obligation of the government is to provide subsidized electricity of any type or form, especially with the current legal framework authorizing the government to provide subsidized energy for the unfortunates.
 
"The energy law states that subsidized electricity must be given to those less fortunate," state Mr. Garniwa.
 
Mr. Gamiwa also asserts disagreements if subsidized electricity is to be repealed and that the government should provide an alternative form of subsidy. Mr. Iwa, on the other hand, supports the idea to change the scheme of subsidized electricity.
 
(hot/ja)

Nadia Maharani, Kartini L. Makmur
 
Plans to change the scheme of subsidized electricity for the public, especially for usage of 450 Volt Ampere (va) and 950va capacity will be executed by the state-owned electricity company PLN immediately.
 
Sofyan Basir, PLN’s President Director, explains approximately 15 million underprivileged citizens should be using subsidized electricity. However, due to the uncontrollable misuse, subsidized electricity is currently used by 44 million people, including the middle and upper class society, cheating on the system to benefit from the government program of subsidized electricity.
 
Mr. Basiradmits PLN’s inability to identify the wealth of its customers, as the company only focuses on the power capacity requested. Due to the issue, Mr. Basir believes that the implementation will be much more effective if subsidized electricity is given based on Prosperous Family Card (Kartu Keluarga Sejahtera – KKS). With such mechanism, even the lower class with power capacity of 1.300va will be able to enjoy subsidized electricity.
 
"There are mistakes both on our part and the policy. Previously, the policy was set on 450va and 950va, regardless whether they are poor or not,” says Mr. Basir.
 
Mr. Basir also said that PLN’s representatives found middle and upper classes using subsidized electricity, despite having luxurious cars and large houses. The trick is by downgrading their electricity capacity and using several transformers. Mr. Basir said these citizens are criminals for using the service they are not entitled to.
 
"It should not be allowed, but the regulation does not state so. If they asked to have a 900va to be installed, as long as those people would pay 600 thousand IDR for installation, then it would be given to them,” states Mr. Basir.
 
Meanwhile, Iwa Garniwa, an energy observer from University of Indonesia (UI) believes the obligation of the government is to provide subsidized electricity of any type or form, especially with the current legal framework authorizing the government to provide subsidized energy for the unfortunates.
 
"The energy law states that subsidized electricity must be given to those less fortunate," state Mr. Garniwa.
 
Mr. Gamiwa also asserts disagreements if subsidized electricity is to be repealed and that the government should provide an alternative form of subsidy. Mr. Iwa, on the other hand, supports the idea to change the scheme of subsidized electricity.
 
(hot/ja)
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