Government allocates Rp 6 trillion for free electricity connections

FUEL POLICY - JAKARTA. The government will allocate 6 trillion (US$422.85 million) in 2019 to provide low-income families with electricity connections, Energy and Mineral Resources Minister Ignasius Jonan said in a statement on Wednesday.

“We will distribute the funds for free connections [to low-income households],” Jonan said, adding that many households could afford the monthly electricity rates, but were not able to pay the Rp 500,000 connection fee.  

The monthly rate for 450 volt ampere (VA) electricity is only around 15,000, the minister added.

Jonan expected local governments – city, municipal and provincial governments – to also allocate funds to help low-income families connect to electricity.

“They can afford monthly fees of Rp 15,000, but they need help to pay the connection cost,” he said, adding that regional governments were expected to help improve electrification rates in their respective regions.

He gave an example that in Probolinggo, East Java, some 2,100 houses were not connected to electricity although state-owned electricity company PLN had constructed electricity networks in their areas.

“I call on regional leaders in Java and other rich provinces to put aside their regional budget funds to provide their low-income residents with free electricity connections,” Jonan added.