Electricity Relief for Business, Industry

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 267.Pers/04/SJI/2020

Date: 29 July 2020

Electricity Relief for Business, Industry

The government through Ministry of Energy and Mineral Resources (EMR) again issues a policy which provides electricity relief for business and industry customers facing the Covid-19 pandemic. The government has instructed the state utility company PT PLN (Persero) to provide the following assistance:

1. Exemption from a minimum bill for customers whose electricity usage is below the minimum charge (40-hour active time), for:

• Social groups subscribing to 1,300 VA and above (S-2/1,300 VA - S-3/> 200 kVA);
• Business groups subscribing to 1,300 VA and above (B-1/1,300 VA - B-3/> 200 kVA); and
• Industrial groups subscribing to 1,300 VA and above (I-1/1,300 VA - I-4/30,000 kVA and above);
• and these customers pay their electricity usage volume only;

2. Exemption from a minimum bill for Special Service group customers is made according to the Electricity Sales and Purchase Agreement (SPJBTL);

3. Exemption from a minimum charge or abonement is valid for:

• Social groups subscribing to 220 VA, 450 VA, and 900 VA (S-1/220 VA - S-2/900 VA);
• Business groups subscribing to 900 VA (B-1/900 VA); and
• Industrial groups subscribing to 900 VA (I-1/900 VA);

The conditions set out in points 1 through 3 apply for bills issued in July to December 2020. If the July bill has been paid, the exemption from minimum bill and minimum charge or abonement will reduce the bill issued in the following month and will be completed at least for October 2020 bill.

It is estimated that 1.26 million PLN's customers will receive the stimulus, consisting of 661,000 social customers, 566,000 business, and over 29,000 industrial. Rp3.07 trillion has been allocated for the stimulus.

Previously, the government issued a policy to help the poor and Micro, Small, Medium Enterprises (MSMEs) through EMR Ministerial Decision Number 139K/26/MEM/2020 on Determination of Discounted Tariffs for PT PLN (Persero)'s Customers in Facing the Impacts of the Corona Virus Disease 2019 (Covid-19). Free electricity is given to Households subscribing to R.1/450 VA tariff, and a 50% discount for Households subscribing to R.1/900 VA tariff for 6 months (April-September 2020); while Small Business subscribing to B.1/450 VA and Small Industry subscribing to I.1/450 VA is given a 100% discount for 6 months (May-October 2020).

These policies have been issued to show that the state is present for those impacted by the pandemic. Cumulatively, the stimulus fund provided by the government for PLN customers facing the impacts of Covid-19 amounted to Rp 11.02 trillion.(IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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