The Government Gives Help to Electricity Rates as a Result of Covid-19 Impacts

By: Ismail) *

In the midst of the co-19 epidemic, President Joko Widodo provided electricity tariff relief to some people, aiming to reduce the economic impact of the corona virus epidemic. This policy is a form of government attention to the community.

Jokowi free electricity payments for 24 million poor people. The suspension is aimed at 450 VA electric power customers. This suspension will be carried out for 3 months, namely April, May and June 2020. In addition, for electricity customers with 900 VA of subsidized power will be given a discount of 50 percent.

            On different occasions, SOE Minister Erick Thohir conveyed a number of SOE’s roles in handling the corona virus in Indonesia. He conveyed this to the Commission VI of the Republic of Indonesia DPR in a virtual work meeting.

            During the meeting, Erick said, in general, SOEs were demanded to be able to help deal with the impact on the health sector, as well as ensuring SOEs were running and were able to increase profits to patch up the country’s financial deficit.

            BUMN also anticipates the impact of Covid-19. SOEs must be more effective in doing business in order to generate greater profits.

            He also explained, from Rp 405 trillion in stimulus funds poured by the government, some of them were executed by SOEs. The stimulus is divided into the food sector, banking and free electricity through PLN.

            Meanwhile, PT PLN (Persero) fully supports the government’s policy to free electricity payments for 24 million customers with 450 VA power and 50% discount on subsidized 900 VA power.

            PLN’s Managing Director, Zulkifli Zaini said, the bill waiver policy for 450 VA customers and 50 percent electricity tariff relief had been discussed and coordinated with PLN. He said he was very supportive and ready to carry out government policies mandated by President Jokowi.

            Zulkifli hopes that this policy can ease the burden on people affected by the global corona virus pandemic. The policy was called seeing the condition of the economic community. Bill relief and payment relief programs are intended to protect the most affected communities.

            At present the community is encouraged to remain at home. Activities such as work, study and worship at home. The purpose of the appeal is to prevent increasingly widespread transmission. The exemption and discounts on electricity tariffs are expected to support this, so that people, especially the disadvantaged, do not have to worry about using electricity during difficult seasons.

            Meanwhile, PT PLN sees that the current level of electricity usage from industries such as malls and hotels has also decreased due to the corona virus.

            This decline occurred because the business sector was experiencing a decline in business activity because there were restrictions on community activities to prevent the spread of the corona virus.

            Many malls cut their operating hours by opening services later in the day, some tenants also close mall outlets earlier or later.

            But Zukifli sees an increase in electricity consumption for housing, it’s just that he has not been able to issue exact figures on the amount of consumption and decreases in consumption from each of these sectors.

            Meanwhile, Zulkifli also ensured 433 villages that had not been electrified would have electricity by the end of 2020. In fact, most of the 433 villages were targeted to be electrified during the Indonesian Proclamation Anniversary on August 17, 2020.

            He admitted, there were several obstacles faced by PLN in realizing the target. First, the difficult and vulnerable infrastructure terrain. To anticipate this, his party has prepared a mapping to distribute electricity to 433 villages quickly.

            The second obstacle, the availability of energy, he must also think about how to use energy sources in the village so that electricity can flow properly. The third obstacle, it must find out what the right system to flow electricity for 433 villages.

            Therefore, he said that PLN will innovate by building electric energy charging stations that will fill electric tubes with local plants in each village.

            This certainly shows that the government especially PLN has a concern for the public to have access to electricity in the midst of the co-19 pandemic. In addition, the easing of costs is also expected to ease the burden on people who work from home.

) * The author is a contributor to the Indonesian Strategic Information Study Institute (LSISI)