Steps to Organize Energy Subsidies

Although already in effect since the beginning of this year, the government's step to revoke subsidies for the 900-VA electricity user category has led to public unrest. The Energy and Mineral Resources Ministry as well as the state electricity company (PLN)'s complaint centers have been flooded with grievances from people who feel they are entitled to the subsidy. The policy affects the public's buying power because rates have not been adjusted over the past four years. To maintain a healthy state budget and to channel energy subsidies only to deserving recipients, the government is unwilling to back down.