Electricity Tariffs Don't Increase In The Third Quarter, KESDM Says The Government Is Ready To Pay Compensation

Ministry of Energy and Mineral Resources (photo: Doc Antara)

JAKARTA - The Ministry of Mineral Resources Energy (ESDM) is known to still hold electricity rates in the third quarter of 2024.

The Director General of Electricity, Jisman P. Hutajulu, said that until now the government is still able to provide compensation for the unchanged electricity tariffs.

"The government is still ready to provide compensation even though the BPP (Substitute Provision Feature) has increased which has led to additional compensation," said Jisman in Jakarta, Wednesday, July 31.

Jisman continued, in fact, policies related to electricity rates are always included in limited meetings (ratas) between ministries. Later the Ministry of Energy and Mineral Resources will then report the amount of electricity tariffs to the Coordinating Minister for Economic Affairs. In the end, the two ministries will consider electric tarf by referring to several parameters such as the exchange rate, Indonesian Crude Price (ICP), inflation, and reference coal prices (HBA).

"Well, we report it. If it is not adjusted, it will have an impact on adding subsidies and compensation. If the subsidy is already there is a target at the beginning, while compensation does not exist. So we report it. But the decision may be on the level, yes. Yes, at the meeting there is the Coordinating Minister who decides it after a limited meeting and for the July one, there will be no increase except Batam," concluded Jisman.

For information, on June 28, the Ministry of Energy and Mineral Resources decided that the electricity tariff in the third quarter (July-September) of 2024 for non-subsidized customers will change or not.

Jisman said this policy is part of the Government's efforts to maintain industrial competitiveness and maintain inflation levels.

In accordance with the provisions in the Regulation of the Minister of Energy and Mineral Resources Number 28 of 2016 jo. Regulation of the Minister of Energy and Mineral Resources Number 8 of 2023, that the adjustment of electricity tariffs for 13 groups of non-subsidized customers can be carried out every 3 months referring to changes to the realization of macroeconomic parameters, namely the exchange rate, Indonesian Crude Price (ICP), inflation, and Reference Coal Price (HBA).