Indonesia Govt Decides to Extend Electricity Bills Relief

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 035.Pers/04/SJI/2021

Date: 22 January 2021

Indonesia Govt Decides to Extend Electricity Bills Relief

The Indonesian Government has decided to extend the electricity relief schemes in the forms of electricity tariff discounts and exemption from minimum electricity fees and load charges or abonemen until March 2021. The statement was made by Secretary of Directorate General of Electricity Munir Ahmad in a webinar titled Extension of Electricity Bills Relief for the Year 2021 on Friday (22/01/2021).

"We would like to express our highest appreciation to PT PLN (Persero) for supporting the Government's efforts in providing relief to people who are most impacted by the Covid-19, especially in terms of providing financial stimulus in 2020," said Munir.

For the record, PT PLN (Persero) had given electricity bills relief to its customers in 2020. The extension of this policy until March 2021 is part of the Indonesian Government's efforts to ease the burden of the poor and prone to poverty as well as industries and commerce in dealing with the impacts of the COVID-19 pandemic.

Director of Electricity Business Fostering, Hendra Iswahyudi, added that the Indonesian Government through Director General of Electricity has instructed PT PLN (Persero) to give electricity relief again in 2021, with the following details:

1. Extension of electricity tariff discounts for PT PLN (Persero)'s Household, Bussiness, and Industry customers under the following conditions:
	a. Households subscribing to 450 VA (R1/TR 450 VA), small businesses 450 VA (B1/TR 450 VA), and small industries 450 VA (I1/TR 450 VA):
	1) Regular (Post-paid)	:	a 100% discount or free (usage fees and load charges);
	2) Pre-paid	:	free tokens in the same amount as those given in 2020;
	b. Households subscribing to subsidized 900 VA (R1/TR 900 VA):
	1) Regular (Post-paid)	:	a 50% discount in electricity bills (usage fees and load charges);
	2) Pre-paid	:	a 50% discount to buy electricity tokes;
	c. Validity period for a and b:
	1) Regular (Post-paid)	:	January to March 2021 bills;
	2) Pre-paid	:	purchase of electricity tokens in January-March 2021;
2. Exemption from minimum electricity fees for PT PLN (Persero)'s customers whose electricity usage is below the minimum charge (40-hour active time) is applicable for:
	a. Social groups subscribing to 1,300 VA and above (S-2/1,300 VA to S-3/> 200 kVA);
	b. Businesses subscribing to 1,300 VA and above (B-1/1,300 VA to B-3/> 200 kVA); and
	c. Industries subscribing to 1,300 VA and above (I-1/1,300 VA to I-4/30,000 kVA);
	thus, the customers only pay their actual usage of electric power.
3. Exemption from minimum electricity fees for Special Services groups is given according to the Electric Power Sales and Purchase Agreement (SPJBTL).
4. Exemption from load charges or abonemen is applicable for:
	a. Social groups subscribing to 220 VA, 450 VA, and 900 VA (S-1/220 VA to S-2/900 VA);
	b. Business subscribing to 900 VA (B-1/900 VA); and
	c. Industries subscribing to 900 VA (I-1/900 VA);
5. The conditions referred to in points 2 through 4 are applied for January to March 2021 bills.

"The Government has allocated a budget of Rp4.57 trillion to cover 33,7 million customers," said Hendra.

Changes in mechanism

PT PLN (Persero) Director of Business and Commerce Management Bob Saril said there are some changes in the mechanism for giving the electricity relief this year.

"For post-paid customers, in 2020 all electricity usage was discounted, namely by 100% for 450 VA and 50% for subsidized 900 VA. This year, however, the discounts are only valid for usage equivalent to 720-hour active time. After this volume, the normal subsidized tariff is applied," said Bob.

Meanwhile, tariff relaxation for social, business, and industrial customers does not change.

For pre-paid customers, Bob said that in 2020, 450 VA customers were given free tokens in the amount equivalent to the highest electricity usage between December 2019 and February 2020. Subsidized 900 VA customers were given 50% discounts based on the highest electricity consumption between December 2019 and February 2020. The discounts were given as tokens. This year, Bob said, 450 VA customers are still given free tokens in the same amount they received in 2020. Customers of subsidized 900 VA, however, will only be given a 50% discount when they buy an electricity token. (IY)

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

Agung Pribadi (08112213555)

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