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Jakarta Post

No electricity price increase in Q1, official says

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Fri, January 4, 2019   /   10:40 am
No electricity price increase in Q1, official says A PLN technician checks electricity meters at a subsidized apartment building in Daan Mogot, West Jakarta. (JP/Bangkit Jaya Putra)

The government has assured that there will be no electricity price change in the first quarter of 2019 – both for subsidized and non-subsidized customers.

The Energy and Mineral Resources Ministry announced Thursday that the non-subsidized electricity price would be similar to the price in the last three months of 2018.

The electricity tariff for big-scale industry; business & government offices; and household, small business and street lighting is set at Rp 997 (7 US cents) per kilowatt hour (kWh), Rp 1,115 per kWh and Rp 1,467 per kWh, respectively.

Meanwhile, for premium service customers and low-usage households with 900 volt-amperes (VA), the tariff is set at Rp 1,645 per kWh and Rp 1,325 per kWh.

“The subsidized electricity tariff also won’t be adjusted. There are 25 categories of customers that receive subsidy,” ministry spokesperson Agung Pribadi said in a press statement.

Under Ministerial Regulation No. 41/2017 on electricity tariffs from state electricity firm PLN, the price is adjusted quarterly based on macro-economic assumptions -- the exchange rate, the Indonesian Crude Price (ICP) and the inflation rate.

From September to November, the assumptions were dynamic – the rupiah exchange rate reached Rp 14,914 per US dollar, the ICP was $71.81 per barrel and the average inflation rate was 0.12 percent.

However, the government decided not to increase electricity prices to maintain people’s purchasing power and to support national economic stability ahead of the presidential and legislative elections in April. (bbn)