50 Percent Electricity Tariff Discount Potentially Gerus Revenue PLN Up To IDR 10 Trillion

PLN (photo: between)

DEPOK - PT PLN (Persero) revealed that the 50 percent electricity tariff discount program which will be implemented from January to February 2025 has the potential to reduce the Company's revenue to IDR 10 trillion.

For your information, the 50 percent electricity tariff discount policy was given by the government to help the community in line with the 12 percent increase in value added tax (VAT) which is effective from January 1, 2025. This program applies to customers below 2,200 volt amperes (VA).

PLN Finance Director Sinthya Roesly said the Company is ready to run a 50 percent electricity tariff discount program. Although, PLN's revenue from customers has the potential to lose IDR 5 trillion per month.

"We are responding to this because there is a decrease in revenue from customers by Rp5 trillion per month in January and February," said Sinthya at PLN's Central Load Management Unit (UIP2B) in Depok, West Java, Thursday, December 27.

Furthermore, Sinthya also ensured that PLN's financial condition was maintained under the supervision of the Ministry of State-Owned Enterprises (BUMN).

"Of course we have to anticipate the direction of the Deputy Minister (Deputy Minister of BUMN Kartika Wirjoatmodjo) how in PLN the financial aspect continues to be maintained and this is coordinated with relevant stakeholders to respond to existing policies as well as possible," said Sinthya.

Previously, it was reported that the government decided to provide a 50 percent discount on electricity rates specifically for electricity customers with power below 2.200 volt amphere (VA). This discount is valid from January 1, 2025 to February 1.

Coordinating Minister for the Economy Airlangga Hartarto explained that a 50 percent discount on electricity rates was given to ease the burden of household expenses.

"To reduce the burden of household expenses and electrical power installed below or up to 2,200 volt ampere, a discount fee of 50 percent is given for two months," he said at a press conference at the Coordinating Ministry for the Economy Office, Jakarta, Monday, December 16.

Meanwhile, PLN President Director Darmawan Prasodjo said he appreciated the 50 percent discount on electricity rates for 2,200 Watt and below which targeted 81.4 million PLN customers consisting of 24.6 million 450 Watt customers, then 38 million 900 Watt customers, 14.1 million 1,300 Watt customers, and 4.6 million 2,200 Watt customers.

"This means that out of a total of 84 million of our household customers, this targets 97 percent discount of our household customers for January and February," he explained.

Furthermore, Darmawan considered that this policy was a blessing because it reduced the burden and also increased people's purchasing power.

"Of course this is a blessing because this reduces the burden on our brothers and sisters and also increases people's purchasing power. And for that we PLN are ready to carry out the mandate of this government," he said.