| Increase Efforts to Reduce Subsidies For TDL |
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| Monday, 26 April 2010 08:27 | |||||||
Page 1 of 2 JAKARTA. The Government proposes to reduce electricity subsidies amounted to Rp. 7.3 trillion and to cover shortages caused by the reduction of subsidies, PT PLN (Persero) is planning to increase electricity basic tariff (TDL) of 15%. With the increase in electricity tariff for 6600 TDL VA then the electricity subsidy can be reduced.
Before starting the meeting with Commission VII of DPR RI, Thursday (22 / 4) The Director General of Electricity and Energy Utilization (DG LPE), J. Purwono explain the government's proposals to reduce electricity subsidies amounted to 7.3 trillion is an effort to reduce the burden of government subsidies. "Because there are changes in the assumptions years ago and now, then there is the additional requirement of electricity subsidy amounting to 24 trillion, but the ability of the state budget was only Rp. 16.7 trillion, so there is a difference of 7.3 trillion that must be covered by PLN in order to continue their business and meet its obligations to other parties, "he said. Fulfillment of obligations amounting to 7.3 trillion proposed by the increase in TDL and to get an additional Rp. 7.3 trillion, if the TDL was applied in July to December this year the average increase is 15%. "Any postponement of one month is required additional state budget funds of Rp. 1.2 trillion per month to cover these needs means getting back the increase in TDL will be even greater, "continued J. Purwono. In accordance with the Financial Memorandum and the Draft Budget for Fiscal Year 2010-P which has been submitted by the Government to Parliament on March 1, 2010, the need for electricity subsidies in the Draft Budget for Fiscal Year 2010-P was Rp 54.50 trillion, with the details, the electricity subsidy for the year 2010 amounted to Rp 53.60 trillion, an additional VA 6600 revenue amounted to Rp 3.10 trillion, the need for electricity subsidies in 2010 amounted to Rp 50.50 trillion, and lack of electricity subsidies in 2009 amounted to Rp 4.00 trillion. With the allocation of electricity subsidies (APBN 2010) amounted to Rp 37.80 trillion, the additional required electricity subsidies amounted to Rp 16.70 trillion. The increase in electricity rates at its core is provided to PLN margin above production cost between 5-8%, with additional margins are expected to enhance the ability of PLN to invest because this time have not received enough revenue so the government subsidizes the price. [esdm] www.tenderoffer.biz
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