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PLN implements cross-subsidy scheme

December, 05 2017 | 01:15 am PLN di Tangsel

The government is vying for a one-price policy for electricity. In July 2015, the price of electricity was Rp1,548/KWh.

By January 2017, the price had dropped to Rp1,467/KWh, where it remains until today.

PLN implements a cross-subsidy scheme to the benefit of customers considered deserving of the subsidy. The subsidy amounts to a total of Rp36.1 trillion for 42 million customers. Household customers receiving the subsidy get 450 VA or 900 VA electricity.

With the improved access to electricity, Indonesia’s rank in the Ease of Doing Business survey conducted by the World Bank has continued to improve.

While Indonesia ranked 78th of 190 countries assessed for the survey in 2015, the country’s position improved to 61st in 2016 and 49th in 2017. Indonesia’s rank is expected to rise to 38th of 190 countries in 2018, according to PLN corporate communication head I Made Suprateka.