Electricity Tariffs for April-June 2021 Remain Unchanged

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 085.Pers/04/SJI/2021

Date: 8 March 2021

Electricity Tariffs for April-June 2021 Remain Unchanged

The Indonesian Ministry of Energy and Mineral Resources (EMR) has announced there will be no tariff adjustment in April-June 2021 for thirteen non-subsidized customer groups. Director General of Electricity of Ministry of EMR, Rida Mulyana, on Monday (8/3/2021) said that Ministry of EMR has asked State Power Utility PT PLN (Persero) to improve its operational efficiency, increase power sales, and provide good electricity services.

According to Regulation of Minister of EMR Number 28 of 2016 on Tariffs of Electricity Provided by PT PLN (Persero), as amended by Regulation of Minister of EMR Number 3 of 2020, tariff adjustment will be applied if there are changes in the realized macro-economic indicators (rupiah exchange rate, Indonesian Crude Price/ICP, inflation rate, and Coal Benchmark Price/HPB). For quarter 2 of 2021, calculation has been based on realization in November 2020 until January 2021.

In the period November 2020-January 2021, the quarterly marco-economic parameters had changed, with the rupiah exchange rate set at Rp14,157.27 per US$, Indonesian Crude Price (ICP) US$47.21 per barrel, inflation rate 0.33%, and the HPB Rp762.84/kg. Based on these changes, tariff adjustment should have been applied, that is, electricity tariffs should be higher than the current tariffs.

"Thus, the electricity tariffs for non-subsidized customers, be it low, medium, or high voltage customers, still refer to the tariffs of previous period of January-March 2021," said Rida.

The tariff for Low Voltage (TR) customers such as households with a power of 1,300 VA, 2,200 VA, 3,500 to 5,500 VA, 6,600 VA and above, businesses with a power of 6,600 to 200 kVA, government offices with a power of 6,600 to 200 kVA, and street lighting remains unchanged at Rp 1,444.70/kWh. The tariff for households with a power of 900 VA-RTM remains the same at Rp 1,352/kWh.

The tariff for Medium Voltage (TR) customers such as businesses, industries, government offices with a power >200 kVA, and special services remains the same at Rp 1,114.74/kWh.

Meanwhile, the tariff for High Voltage (TR) industry customers with a power >=30,000 kVA and above also remains unchanged at Rp 996.74/kWh.

The tariffs for 25 subsidized customer groups do not change, either. These groups include Micro, Small, and Medium Enterprises (MSME), small businesses, small industries, and social activities. The government has also given social protection against the impacts of COVID-19, by providing discounted tariffs for subsidized 450 VA and 900 VA households, 450 VA small businesses, and 450 VA small industries.

The electricity tariffs may be raised if there are changes in ICP, rupiah exchange rate, inflation, and the HPB. However, the Ministry of EMR expects that PLN can improve its operational efficiency so that the cost of electricity generation (BPP) can be lowered, or at least remain the same with the previous period. The same tariffs will give certainty to community groups, maintain people's purchasing power, and support national stability and economic recovery.

Tariff Adjustment scheme for April-June 2021 (Download)

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

Agung Pribadi (08112213555)

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