Indonesia plans $720 mln cut to 2014 electricity subsidy bill

Indonesia is pushing forward plans to cut further into its hefty subsidy bill this year and will begin in July to axe support for a range of users including households and industry, an official said, ahead of a previous plan to begin the cuts in 2015.

Southeast Asia’s largest economy is pushing to rebalance its energy subsidy spending that has inflated along with the power demands of its increasingly affluent population and a weaker-than-expected rupiah this year.

According to data from the Energy and Mineral Resources Ministry, the latest cuts would save the government 8.51 trillion rupiah ($720 million).

In April, the government said it would cut subsidies for some of the country’s top electricity consumers in efforts to reduce its 280 trillion rupiah ($24 billion) subsidy bill this year. Steel and cement producers said the move would hurt their production.

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Posted June 15, 2014 by repit in News

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