No Electricity Tariff Hike in July-September 2020

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 194.Pers/04/SJI/2020

Date: 3 June 2020

No Electricity Tariff Hike in July-September 2020

Ministry of Energy and Mineral Resources (EMR) confirms there will be no electricity tariff hike for 13 (thirteen) non-subsidized customers in 1 July-30 September 2020 or in other words, tariffs remain the same with those in April-June 2020. In fact, the tariffs are the same with the ones that have been applied since 2017. Tariffs for 25 subsidized customer groups will not be changed either.

"The electricity tariffs for non-subsidized customers in July-September remains unchanged, the rates have been the same since 2017. The same goes with subsidy, some customer groups are even given a discount as safety net in the energy sector during the pandemic, namely for 450 VA households and 900 VA disadvantaged households, also 450 VA businesses and 450 VA industries," said Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR in Jakarta, Wednesday (3/6).

The tariff for non-subsidized, Low Voltage (TR) customers such as 1,300 VA, 2,200 VA, 3,500 VA, and 5,500 VA households, 6,600 VA-200 kVA businesses, 6,600 VA-200 kVA and above government offices, and public street lighting does not rise or is stable at Rp 1,467/kWh. For 900 VA-RTM households, the tariff remains fixed at Rp 1,352/kWh.

The tariff for Medium Voltage (TM) customers such as businesses, industries, government offices with a power >200 kVA, and special service is Rp 1,115/kWh, while the tariff for High Voltage (TT) customers such as industries with a power >= 30,000 kVA and above does not change either, at Rp 997/kWh.

The electricity tariffs for the other 25 subsidized customer groups will not change. These 25 groups will still be given electricity subsidy, and these groups include Micro, Small, and Medium Enterprises (MSME), small businesses, small industries, and social projects. The government has also been giving social protection against the impacts of COVID-19 by giving a discounted tariff to 450 VA and 900 VA households, 450 VA businesses, and 450 VA industries.

According to EMR Ministerial Regulation Number 28 of 2016 on Tariffs of Electricity Supplied by PT PLN (Persero) as last amended by EMR Ministerial Regulation Number 3 of 2020, four macroeconomic indicators are used in setting the electricity tariff (tariff adjustment) on a quarterly basis, namely exchange rate, Indonesian Crude Price (ICP), inflation, and Coal Benchmark Price (HPB).

Ministry of EMR has urged that PT PLN (Persero) continue to make efforts to improve efficiency in all fields by forming task forces that are responsible for their respective field and assigned a time target set by the management and to develop effective marketing strategies that will stimulate the market to grow rapidly over long periods. (IY)

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

Agung Pribadi (08112213555)

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