Palembang, S Sumatra (Antara Babel) - The Energy and Mineral Resources Ministry stated abolition of the subsidy on electricity for 900 voltage consumers, considered to fare well economically would be made gradually.
Head of the sub-directorate of electricity price of the ministry Jisman P Hutajulu said the abolition is gradual that the impact would not be too heavy for the consumers.
The phases of the abolition is every two months - January-February, March - April, and May until December, 2017, Jisman said here on Tuesday.
In July, 2017, there would be regulation on tariff adjustment.
"Each phase, 32 percent of the subsidy is to be abolished. In December, 2016, the tariff was Rp562 per kwh and the tariff would rise to Rp774 per kwh in January-February, to Rp1,023 in March April, and Rp1,352 in May-December, 2017," he said.
He said the tariff of Rp1,352 per kwh is an economic tariff the same as the non subsidized price.
"The subsidy for low income households among 900 V consumers is maintained with the tariff unchanged from Rp562 per kwh," he said.
The abolition of subsidy is only on household consumers, he said, adding the subsidy is maintained for 900 V consumers among small and medium enterprises.
"Subsidies for other consumers like mosques, churches, hospitals, campuses, cottage industries and other small businesses are also maintained.
