Hooray! Non-Subsidized Electricity Tariffs Don't Increase In July-September 2023 Period

Illustration of the electric meter (Photo; Doc. intermediate)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of Electricity has set Electricity Tariffs for 13 groups of non-subsidized customers who do not experience changes (permanent rates) as of July 1 to September 30, 2023.

The Director General of Electricity, Jisman P. Hutajulu, said that this determination aims to maintain people's purchasing power and industrial competitiveness.

Jisman said, according to the Regulation of the Minister of Energy and Mineral Resources Number 28 of 2016 concerning Electricity Tariffs Provided by PT PLN (Persero) as amended lastly by the Regulation of the Minister of Energy and Mineral Resources Number 3 of 2020, electricity tariffs for non-subsidized customer groups are adjusted every 3 months if there is a change in the realization of macroeconomic indicators, namely the exchange rate, Indonesian Crude Price (ICP), inflation, and Coal Patokan Price (HPB).

According to Jisman, the realization of macroeconomic indicators used for the adjustment of the rate for the third quarter of 2023 is the average realization in February, March, and April 2023. He then detailed the details, namely the exchange rate of IDR 15,097.81 per US dollar, the ICP of 77.80 US dollars per barrel, the inflation rate of 0.22 percent, and the HPB of IDR 920.41 per kg (according to the coal DMO policy of 70 US dollars per ton).

Paying attention to these indicators, calculationally, non-subsidized electricity rates for non-subsidized customers should increase when compared to tariffs in the second quarter of 2023. However, to maintain people's purchasing power and industrial competitiveness, the Government decided that the rate in the third quarter of 2023 was fixed.

"This aims to maintain people's purchasing power and consider the current condition of society and industry," he explained.

Furthermore, Jisman said, for social customers, poor households, small businesses, small industries, and including those for electric use for Micro, Small and Medium Enterprises (MSMEs) which are included in 25 subsidized groups of customers also do not change and are still given electricity subsidies.

To encourage the efficiency of the cost of providing electricity (BPP) and electricity tariffs, the Ministry of Energy and Mineral Resources encourages PT PLN (Persero) to continue to take efficiency steps.

"The Ministry of Energy and Mineral Resources continues to encourage PLN to take operational efficiency measures and spur sales of electricity more aggressively," concluded Jisman.