Thu, 02 Sep 2010


VIVAnews - The Indonesian government will be increasing the electricity tariff within the next four years as an attempt to reduce the amount of subsidy being disbursed to the electricity sector.

Finance Minister Agus Martowardojo said the rise will also be applied to fertilizer and fuel.

"In line with the roadmap, we'll be handling subsidies for fertilizer in three years, electricity in four years, and fuel in five years," said Agus today, September 2.

Despite the tariff revisions, said Agus, the government will still pay attention to the marginalized people. "There will be a special program to empower the marginalized people," he said.

The subsidy is cut because the government wants to prepare a better State Budget. Therefore, the planned 15 percent increase of electricity tariff has been informed to every state department.

"The measure is supervised by Minister for the Economy and is already in line with the nationa development plan since 2009," he said.

In addition, the government would also cut subsidies in the State Budget aiming at more allocation for the national development. "30 percent of budget is allocated for subsidies and paying out rates. If it can be used for financing the country's development, it will be better," said Agus.