JAKARTA (TheInsiderStories) – State power producer, PT Perusahaan Listrik Negara (PLN) proposed an additional stimulus around Rp4.66 trillion (US$332.86 million) to extend their incentive for the customers in the first quarter of 2021. So far, the realization subsidy and stimulus has been collected from the government was Rp62.6 trillion, said the director, Bob Saril, in a virtual presentation on Friday (01/22).
The director general at the energy and mineral resources (EMR) ministry, Rida Mulyana, explained the additional stimulus will be allocated for a 100 percent electricity bill discount program for the household, business, and industrial customers with 450 volt amperes (VA) and a 50 percent discount priced for 900 VA due to the pandemic.
Last year, the government prepared the Economic Recovery Program (ERP) funds around Rp641.12 trillio. In detail, part of the funds will used to support the consumption budget Rp172.1 trillion and an interest subsidy Rp34.15 trillion.
According to finance ministry, Sri Mulyani Indrawati, the state also provided tax incentives with total amount Rp123.01 trillion, including stimulus reserves amounting to Rp26 trillion. The country also allocates Rp25.27 trillion for capital injection to the state-owned companies (SOEs).
Then, the government provides fuel subsidies in the framework of mandatory biodiesel 30 percent worth of Rp2.78 trillion. She continued, the compensation payment Rp90.42 trillion for three SOEs, energy firm, PT Pertamina amounting to Rp45 trillion, food operator Perum Bulog at Rp560 billion and PLN worth of Rp45.42 trillion.
For the tourism sectors, her ministry budgeted Rp3.8 trillion, housing Rp1.3 trillion, and spending Rp60 trillion. There are also support for local government worth of Rp15.1 trillion, consisting of special allocation reserves Rp9.1 trillion, economic recovery up to Rp5 trillion, and loans to the regions as much as Rp1 trillion.
Moreover, guarantee of new working capital loans for micro, small, and medium enterprises (MSMEs) Rp6 trillion. Indrawati revealed, the government also provides a bailout fund for MSMEs working capital worth of IDR19.65 trillion and a placement of funds for loan restructuring Rp87.59 trillion.
Funding will be carried out through the state bond issuances purchased by Bank Indonesia through the primary market. Director general at the ministry, Luky Alfirman added, the policy has been ruled by the Presidential Decree Number 23 of 2020
Based on the decree, the ERP can be carried out through the mechanism of placement of funds, guarantees, state capital injection, and government investment. The funds can also be given to increase the business capacity of SOEs and subsidiaries, including to carry out special assignments in the implementation of the recovery program.
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