Good News From The Ministry Of Energy And Mineral Resources! No Increase In Non-Subsidized Electricity Tariffs For The January-March 2023 Period

JAKARTA - The government through the Ministry of Energy and Mineral Resources (ESDM) has decided not to increase electricity tariffs for the January-March 2023 period (triwulan I) for 13 non-subsidized customers.

"To maintain people's purchasing power and consider current conditions that do not support to continue implementing tariff adjustments, the Government has decided on electricity rates for the first quarter of 2023 (January-March 2023) for non-subsidized customers referring to the rate in the fourth quarter of 2022 (October-December 2022) or fixed tariffs," said Plt. Director General of Electricity at the Ministry of Energy and Mineral Resources Dadan Kusdiana, Friday, December 30.

Dadan added, in accordance with the Regulation of the Minister of Energy and Mineral Resources Number 28 of 2016 concerning the Power Tariff provided by PT PLN (Persero) as amended lastly by the Regulation of the Minister of Energy and Mineral Resources Number 3 of 2020, if there is a change in the realization of macroeconomic indicators (exchange rate, Indonesian Crude Price/ICP, inflation, and Coal Patokan Price/HPB) which are calculated in three months, adjustments will be made to the electricity tariff (traff adjustment).

Later, the tariff for the first quarter of 2023 will still use the realization of August until October 2022.

Dadan said that the realization of the average macroeconomic parameter from August to October 2022 was an exchange rate of IDR 15,079.96 per US dollar, ICP of 89.78 US dollars per barrel, inflation rate of 0.28 percent, and Coal Patokan Price (HPB) of IDR 920.41 per kg with a DMO Batubara price policy of 70 US dollars per tonne.

Dadan added that based on the four parameter changes, the electricity tariff adjustment in the first quarter of 2023 should have increased compared to the electricity tariff set in the fourth quarter of 2022. However, this increase was not carried out in order to maintain people's purchasing power.

"As for the electricity tariff for 25 groups of other subsidized customers, there are also no changes, the tariff is fixed. A total of 25 groups of customers are still provided with electricity subsidies, including customers whose electricity allocation is for micro, small and medium enterprises (MSMEs), small businesses, small industries, and social activities," explained Dadan.

Furthermore, he said, in the future it is possible that electricity tariffs could experience changes up or down to see the development of exchange rates, ICP, inflation, and HPB and the current condition of the community. The Ministry of Energy and Mineral Resources also encourages PT PLN (Persero) to continue to strive to take operational efficiency measures that can reduce the cost of providing electricity and electricity tariffs.

"The increase in the amount of electricity tariffs certainly provides certainty to various groups of people and maintains people's purchasing power and supports national economic stability and recovery," he concluded.