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Electricity subsidy to cost Rp 83 trillion in 2025, PLN estimates
The state-owned electricity utility expects the government to spend around Rp 83 trillion (US$5.11 billion) in 2025 to keep electricity cheap for consumers, marking a 9.56 percent increase from this year's projected amount.
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A technician of state-owned electricity company PLN stands atop a transmission tower during regular maintenance work on Dec. 27, 2023 in Palu, Central Sulawesi. (Antara/Basri Marzuki)
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tate-owned electricity utility PLN expects the government to spend around Rp 83 trillion (US$5.11 billion) to keep electricity cheap for consumers in 2025, which marks an increase of almost 10 percent from the Rp 75.83 trillion projected for the same purpose this year.
PLN president director Darmawan Prasodjo said the estimate was based on the rising oil price and exchange rate assumptions laid out in next year’s state budget draft (RAPBN).
For 2025, the government sees the rupiah exchange rate at an average of Rp 15,100 per United States dollar and the Indonesian crude oil (ICP) price benchmark at $80 per barrel, according to the 2025 RAPBN.
The draft includes an inflation rate assumption in the range of 1.5 to 3 percent.
“The amount of the 2025 electricity subsidy […] is [estimated at] Rp 83.08 trillion,” he told House of Representatives Commission VII, which oversees energy and mineral resources, in a hearing broadcast live on Thursday.
Read also: Energy subsidies may be cut next year, budget talks suggest
He went on to say that 64.95 percent of the estimated amount to be spent on electricity subsidies next year, some Rp 53.96 trillion, would be allocated for the household sector comprising 35.22 million customers.
