Sri Mulyani Disbursed The Electricity Tariff Discount Using The State Budget Of Up To IDR 13.6 Trillion

Minister of Finance Sri Mulyani Indrawati revealed that the value of the APBN budget realization for the electricity tariff discount program of 50 percent in January and February reached IDR 13.6 trillion.

Sri Mulyani said that the incentives were enjoyed by 71.1 million customers in January and 64.8 million customers in February to customers with electricity up to 2,200 VA.

"The total temporary realization of the budget for the provision of electricity discounts is IDR 13.6 trillion," Sri Mulyani wrote on Instagram @smindrawari, Monday, March 24.

Sri Mulyani conveyed that the 50 percent discount electricity tariff program policy contributed to the decline in price inflation regulated by the government (administered price), so that overall Indonesia's inflation was controlled at low numbers.

"This is one of the government's efforts to protect people's purchasing power. Hopefully, with public consumption maintained, the momentum of economic growth can also continue," said Sri Mulyani.

Previously, the Central Statistics Agency (BPS) saw deflation in February 2025 which was recorded at 048 percent on a monthly basis or month to month (mom) driven by price deflations regulated by the government.

For information, the consumer price index (IHK) decreased from 105.99 in January 2025 to 105.48 in February 2025.

On an annual basis, Indonesia experienced deflation of 0.09 percent year on year (yoy), and deflation of 1.24 percent in calendar year calculations or year to date (ytd).

Head of BPS, Amalia Adininggar Widyasanti said that the core component experienced inflation of 0.25 percent with an inflationary contribution of 0.16 percent.

"The dominant commodities that contribute to the inflation of the core components are gold jewelry, powder coffee and cars," he said at the Press Conference, Monday, March 3.

Amalia said that the price component regulated by the Government experienced deflation of 2.65 percent by contributing 0.48 percent of deflation.

According to him, the dominant commodity that contributes to component deflation is the electricity tariff because there is a discount on electricity rates that will still take place in February 2025.

Amalia added that the volatile price component experienced deflation of 0.93 percent, this component contributed 0.16 percent to deflation.

Meanwhile, the commodities that are dominant in contributing to the deflation of volatile components are broiler meat, shallots, red chilies, cayenne pepper, tomatoes, and broiler eggs.

Amalia said that the expenditure group that contributed to monthly deflation was housing, water, electricity, and household fuel with a deflation of 3.59 percent and contributed 0.52 percent to deflation.

According to him, the dominant commodity driving the group's deflation is the discount on electricity rates which contributes 0.67 percent to deflation.

Furthermore, commodities that also contributed to deflation due to the decline in prices for several foods volatile, such as broiler meat, whose prices fell so that they contributed to deflation by 0.06 percent, shallots, and red chilies also experienced a decline in prices throughout February, giving deflations of 0.05 percent and 0.04 percent, respectively.

In addition, there are other commodities that also contributed to inflation in February 2025, namely the increase in PAM drinking water tariffs which contributed to 0.13 percent of inflation and an increase in gold jewelery prices contributed 0.08 percent of inflation.

Then the increase or adjustment in gasoline prices contributed 0.3 percent to inflation.