Tower of Power - Photo by PLN

JAKARTA (TheInsiderStories) – Indonesia’ parliament approved the government planned to inject capital for state-owned power producer PT Perusahaan Listrik Negara (PLN) and toll operator PT Hutama Karya with total amount Rp17 trillion (US$1.17 billion). In details Rp6.5 trillion for PLN, while Rp10.5 trillion for Hutama Karya.

PLN Finance Director Sarwono Sudarto said on Tuesday (18/09), the capital injection will be allocated to rural electricity programs, transmissions and electrical substations. He claims, PLN’s investment program is still in line with planning.

At the meantime, government and Budget Committee of the parliament has agreed to increased energy subsidy to Rp157.7 Trillion in 2019 State Budget. In the draft of State budget, government proposed the energy subsidy was Rp156.5 trillion.

The increasing amid the change in the Rupiah exchange rate assumption against the US dollar from 14,400 per US dollar to 14,500 against the US dollar. Oil lifting also changed from 750 thousand per barrel per day became 775 thousand barrels per day.

This value consists of fuel and liquid petroleum gas (LPG) subsidies to Rp. 100.68 trillion or an increase of Rp616 billion from the initial assumption. Then electricity subsidies rose by Rp642.7 billion from the initial assumption to Rp57.17 trillion.

“In fuel and LPG and electricity subsidies, each carry over Rp5 trillion goes to the next fiscal year,” said Suahasil Nazara, Head of Fiscal Policy Agency of Finance Ministry on Wednesday (19/09). He added, next year the government also supports new pairs for consumers of 450 Volt Ampere.

Nazara asserted, the government financed the installation either through subsidies or related ministry spending or the money is given directly to PLN.

US$1: Rp14,500

Email: linda.silaen@theinsiderstories@gmail.com

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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

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