Pekanbaru (ANTARA News) - The electricity tariff hike by 14 to 15 percent this year is predicted to save a subsidy budget of Rp14 trillion, an official said.

"In 2012, electricity subsidized budget for the whole of Indonesia was estimated at Rp100 trillion, the data is not BPK audit results yet. It is enormous," state electricity company PT PLN spokesman Doddy Benjamin Pangaribuan said in Pekanbaru on Thursday.

If the TTL increase 14 percent this year, so it would save a subsidy budget of Rp14 trillion. But, if the TTL increased less than 14 percent, the save of subsidy will also lower.

He said there is not exact time yet when the TTL will increase, because it depends on the government policy," he said.

"We want it will be held soon," he said.

Director of Budgetary Revenues and Expenditures Budget Directorate General of the Ministry of Finance in Jakarta Purwiyanto, previously stated, there are four factors that become barriers to quality of expenditure, the limited fiscal space, not optimal absorption and accumulation in the fourth quarter, mandataroy spending and subsidy large.

In the case of fiscal space with fiscal capacity of Rp1.529 trillion of tax revenue and non tax, fiscal needs of Rp 1.771 trillion, which is the spending and debt repayments.

To narrow the fiscal gap, he said, can be done by adding debt, selling assets, and remove subsidies.

In Budget of 2013, the number of assigned revenue reached Rp 1529.7 trillion.

From the total expenditure was set at Rp1.683 billion, the government allocated Rp 317.2 trillion for the subsidy.

A total of Rp274,7 trillion of which is energy, including electricity subsidies around Rp10 billion, and the remaining Rp42.4 trillion in non-energy subsidies.
(S038/KR-BSR/O001)

Editor: Jafar M Sidik
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