All factions in the House Commission VII expressed their approval of the proposal at a working meeting with Energy and Mineral Resources Minister Darwin Saleh here on Thursday.
However, the House Commission gave notes to the government`s proposal to raise basic electricity tariff by 10 percent effective April 1, 2012.
The House asked the proposal for electricity tariff hike to be reviewed.
The government proposed an electricity subsidy of Rp45 on assumption that basic electricity tariff would increase by 10 percent effective April 1, 2012. However, the policy did not apply to incapable customers with 450 VA.
With the 10 percent increase, the electricity tariff would go up to Rp796 from Rp726 per kWh.
The electricity subsidy of Rp45 trillion would consist of Rp40.5 trillion from subsidy in the current year, a shortage of Rp4.5 trillion based on the results of audit by the State Audit Board, and Rp4.5 trillion from the transfer of subsidy from 2012 to 2013.
The assumed subsidy was among others based on the rupiah`s exchange rate of Rp8,800 per dollar, oil price of US$90 per barrel, and electricity sales of Rp172.8 trillion.
Achmad Riyaldi of the House Commission from the Justice and Prosperous Party (PKS) said the budget allocation of Rp45 trillion accorded with the spirit of lowering power subsidy in stages.
Electricity subsidy is expected to reach Rp65.5 trillion for 2011.
"We have agreed on the budget allocation of Rp45 trillion but not the increase in electricity tariff because we still have another alternative," he said.
Satya W Yudha of the Golkar Party faction lauded the government`s efforts to lower the subsidy.
(T.K007/H-NG/S012)
Editor: Priyambodo RH
Copyright © ANTARA 2011
