The Jakarta Post
President Joko “Jokowi” Widodo has insisted on maintaining the current prices of electricity and certain types of fuel until at least the end of 2019, when he completes his term, saying it was part of an effort to preserve the people’s purchasing power.
Subsequently, the prices of Premium gasoline (RON 88) and subsidized diesel Solar will stay at 6,450 (49 US cents) and Rp 5,150 per liter, respectively. These rates have been in place since April 2016, even though the price of global crude continues to rise.
Meanwhile, the price of low voltage electricity for non-subsidized customers of state electricity firm PLN will remain unchanged at Rp 1,467.28 per kilowatt hour (kWh). Prices for mid-voltage and high-voltage electricity will also still hover at Rp 1,114.7 and Rp 996.74 per kWh, respectively.
“As instructed by the President, [...] the prices of Premium and Solar will remain unchanged [until 2019]. We will do our best to keep the prices at the current level,” Energy and Mineral Resources Minister Ignasius Jonan said on Monday evening.
“The government has also decided to maintain electricity rates until next year.”
The government is currently formulating a government regulation (PP) that will provide a discounted price for coal bought by PLN from local miners to ease the company’s financial burdens.
As coal-fired power plants account for more than 57 percent of Indonesia’s power generation capacity, any increase in coal prices is a major blow for PLN. (gda)