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State energy monopoly PLN abandoned plans to upgrade its electric furnaces two days after it said it had started trials with 2,000 beneficiaries.
The decision was made to “keep people comfortable” as the economy recovers from the COVID-19 pandemic, PLN President Darmawan Prasojo said in a statement late Tuesday evening.
“PLN has decided to cancel its plan for the conversion of electric furnaces. [The company] will continue to provide a reliable energy supply to the population,” the statement said. the end of the year.
Satya Vidya Yudha, a member of the National Energy Council (DEN), said on Monday that the plan was a “hasty move” given the lack of preparation before the PLN tests began.
He further said that the installation and use of electric ovens requires many requirements and is not suitable for the needs of SMEs.
“Street food vendors using 3kg liquefied petroleum gas [LPG] tanks [cannot] easily move an electric stove,” Satya said in an interview hosted by CNBC Indonesia.
The government has previously considered providing free electric stoves to the millions of households currently using heavily subsidized LPG for cooking in an attempt to reduce Indonesia’s dependence on LPG imports and reduce the burden on the state budget from LPG subsidies.
Domestic manufacturers plan to produce a total of 15.3 million electric ovens over the next three years to support government efforts to persuade CIS consumers to switch to electric ovens.
Initially, PLN was responsible for conducting trials in Solo, Central Java and Denpasar, Bali. By the end of the year, the energy company will hand over more than 300,000 electric furnaces.
However, Economy Coordinator Airlangga Hartarto said at a press conference on Friday that the government had decided to delay the scheme, adding that there had been no discussions with the House of Representatives about the funding needed to implement the scheme.
“[The government] has decided that [the conversion plan] will not be implemented this year,” Airlangga said.
State Enterprises (SOE) Minister Eric Tohir earlier this month estimated that the state would spend nearly 5 trillion rupees ($334.7 million) a year to provide beneficiaries with free electric stoves.
This year, subsidies for 3kg LPG cylinders are valued at Rs 134.8 trillion, accounting for 26.8% of the total energy subsidies in the country.
Statistics Indonesia data showed that between January and July, the country imported 3.9 million tons of LPG, worth $3.12 billion.
Post time: Sep-29-2022