Thank God, The Government Will Not Increase Electricity Tariffs Until June 2023

JAKARTA - The government through the Ministry of Energy and Mineral Resources (ESDM) has decided that electricity tariffs for the April-June 2023 period for 13 non-subsidized customers of PT PLN (Persero) will not change or be fixed.

Director General of Electricity at the Ministry of Energy and Mineral Resources Jisman P Hutajulu said the decision was made to maintain people's purchasing power and consider the stability of conditions in order to support national economic recovery.

He said, according to Minister of Energy and Mineral Resources Regulation Number 28 of 2016 concerning Tariffs of Electricity Provided by PT PLN (Persero) as last amended by Regulation of the Minister of Energy and Mineral Resources Number 3 of 2020, electricity tariff adjustments are carried out every 3 months if there is a change in the realization of indicators. macroeconomic (exchange rate, Indonesian Crude Price/ICP, inflation, and reference price of coal/HPB).

He revealed that according to these provisions, the macroeconomic parameters used for the second quarter of 2023 use the average realization for November 2022, December 2022, and January 2023, with a realized exchange rate of IDR 15,522.99 per US dollar, an ICP of 80.90 dollars. US per barrel, an inflation rate of 0.36 percent, and an HPB of IDR 920.41 per kilogram (according to the coal DMO policy of 70 US dollars per tonne).

Based on the changes in these four parameters, said Jisman, the electricity tariff adjustment or tariff adjustment should have increased compared to the tariffs set in the first quarter of 2023.

"However, to maintain people's purchasing power and considering current conditions, the government has decided not to increase electricity rates," said Jisman as quoted from Antara, Thursday, March 30.

In addition, electricity tariffs for the other 25 groups of subsidized customers have also not changed and electricity subsidies are still being provided, including customers whose electricity is intended for micro, small, and medium enterprises (MSMEs) and social activities.

"The Ministry of Energy and Mineral Resources continues to encourage PT PLN (Persero) to continue to take operational efficiency steps and spur electricity sales more aggressively," said Jisman.