Energy and Mineral Resources Minister Jero Wacik said at a working meeting with the House of Representatives (DPR)`s Commission VII here on Thursday that the proposal had considered state electricity company PT PLN`s risk including its capacity to obtain loans.
"We propose an increase in electricity subsidy under the draft revision of the 2012 state budget to Rp43 trillion from Rp49.1 trillion previously," he said.
The proposal for electricity subsidy cut came a day after the vast majority of House Commission XII members called for a reduction of electricity subsidy at a working meeting with the government.
He said the reduction of electricity subsidy was made it possible after the risk of delayed operation of coal-fired power plants could be reduced.
The delayed operation of coal-fired power plants has lowered PT PLN`s coal consumption to 39.37 million tons from 48.06 million tons previously, raising electricity subsidy to Rp26.72 trillion.
The figure could be kept down to Rp20.61 trillion after a number of efforts had been made by among others slashing operation and maintenance costs, the minister said.
Meanwhile, other factors causing an increase in electricity subsidy remained unchanged, he said.
The other factors are the delayed operation of a liquefied natural gas (LNG) terminal which caused gas supplies to power plants to fall to 351.5 trillion British thermal unit (TBTU) from 372.5 TBTU as originally planned. As a result, electricity subsidy increased by Rp8.28 trillion.
The electricity subsidy also increased by Rp6.98 trillion due to a decline in electrical power sales to 170.3 trillion Watt hour (TWh) from 173.77 TWh.
The other factor is an increase in Indonesian crude price (ICP) to US$105 a barrel from US$90 a barrel, raising electricity subsidy by Rp4.7 trillion. The increase in rents for generator sets to 11.41 TWh from 7.25 TWh has raised electricity subsidy by Rp3.51 trillion, and an increase in power purchase from private developers to 43.03 TWh from 40.71 TWh by Rp1.4 trillion. (*)
Editor: Kunto Wibisono
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