Electricity Tariff Stimulus to Continue into Q2 2021

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 085.Pers/04/SJI/2021

Date: 9 March 2021

Electricity Tariff Stimulus to Continue into Q2 2021

The Indonesia government has decided to give electricity stimulus to the public and businesses. A stimulus package which includes tariff discount, exemption from minimum load charge (abonemen), and exemption from minimum billing will be extended into quarter 2 of 2021, that is, from April until June 2021.

"The government is committed to giving stimulus in order to ease the burden of the underpriviledged and the vulnerable, as well as industry and commerce groups in times of COVID-19 pandemic," said Director General of Electricity of Ministry of Energy and Mineral Resources (EMR), Rida Mulyana, on Monday (8/3/2021).

Between April 2020 and January 2021, the electricity stimulus has been enjoyed by 33.04 million customers at a total value of Rp14.24 trillion.

The electricity tariff stimulus is of temporary nature, not permanent assistance. Starting Q2 2021, the stimulus amounts to only 50 percent of previously given.

"With national economy improving, we've decided that the tariff discount for households, industries, and small businesses with a power of 450 VA will be 50%, not 100%. Besides the stimulus, these consumer groups still receive subsidies," said Rida.

According to the results of a Coordination Meeting between three ministries, namely Minister of EMR, Minister of Finance, and Minister of State Owned Enterprises of 2 March 2021 on Electricity Subsidy Policy and Stimulus Program for Electricity Sector, discounted electricity tariff from PT PLN (Persero) to household, business, and industry customers in 2021 will be extended into June 2021 under the following conditions:

1. A 50% tariff discount is valid for household group with a power of 450 VA (R1/TR 450 VA), small business group 450 VA (B1/TR 450 VA), and small industry group 450 VA (I1/TR 450 VA);
2. A 25% tariff discount is valid for households subscribing to a subsidized 900 VA plan (R1/TR 900 VA);
3. Exemption from minimum billing of 50% for social, business, and industry groups with a power of 1,300 VA and above, and special services groups;
4. Exemption from minimum load charge (abonemen) of 50% for social group with a power of 220 VA, 450 VA dan 900 VA, and business and industry groups with a power of 900 VA.

"The policy shows that the state cares and is present for the people. It also aims to protect the industry and commercial sectors that are affected by the pandemic. We believe that electricity makes people and business players productive despite the COVID-19 pandemic," continued Rida.

The Indonesia government through Director General of Electricity has called on State Electricity Company PT PLN (Persero) to give electricity stimulus in Q2 2021, as follows:

1. Extension of tariff discount for Household, Business, and Industry customers under the following conditions:

a. Households with a power of 450 VA (R1/TR 450 VA), small business 450 VA (B1/TR 450 VA), and small industries 450 VA (I1/TR 450 VA):

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• • Regular (postpaid): electricity bills will be discounted by 50% (usage volume charge and minimum load charge);
  • Prepaid: a discount of 50% will be given when buying electricity token;

b. Households subscribing to a subsidized 900 VA plan (R1/TR 900 VA):

.

• • Regular (postpaid): electricity bills will be discounted by 25% (usage volume charge and minimum load charge);
  • Prepaid: a discount of 25% will be given when buying electricity token;

c. The validity period of items a and b:

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• • Regular (postpiad): bills in April to June 2021;
  • Prepaid: electricity tokens bought in April to June 2021.

2. A 50% exemption from minimum billing for customers whose electricity usage is below the minimum billing (40 hours of active usage), as follows:

• Social group customers with a power of 1,300 VA and above (S-2/1,300 VA to S-3/> 200 kVA);
• Business group customers with a power of 1,300 VA and above (B-1/1,300 VA to B-3/> 200 kVA); and
• Industry group customers with a power of 1,300 VA and above (I-1/1,300 VA to I-4/30,000 kVA and above);

Customers pay only the electricity volume they have used.

3. A 50% exemption from minimum billing for Special Services Group customers in accordance with the Electricity Sales and Purchase Agreement (SPJBTL);

4. A 50% exemption from minimum load charge (abonemen) is applicable for:

• Social Group customers with a power of 220 VA, 450 VA, and 900 VA (S-1/220 VA to S-2/900 VA);
• Business Group customers with a power of 900 VA (B-1/900 VA); and
• Industry Group customers with a power of 900 VA (I-1/900 VA).

5. The conditions as set out in points 2 through 4 are valid for bills issued in April to June 2021.

The budget needed to provide electricity stimulus until June 2021 is estimated at Rp6.94 trillion, with 33.9 million customers receiving the stimulus. The Ministry of EMR has asked that PT PLN (Persero) continues to maintain its generation efficiency and service quality when carrying out the stimulus program. (IY)

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

Agung Pribadi (08112213555)

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