Eddy Soeparno Praises President's Decision Not to Raise Electricity Tariffs

Deputy Speaker of the People’s Consultative Assembly (MPR) from the National Mandate Party (PAN) faction, Eddy Soeparno, has assessed that President Prabowo Subianto’s decision not to raise electricity tariffs is a strategic move that affirms the state’s alignment with the people amidst heavy pressures in the global and domestic energy sector. According to Eddy, the policy cannot be separated from the situation in the national electricity sector, particularly regarding dependence on coal and gas as the main sources for power generation. In this context, the state is not only dealing with price dynamics but also supply issues disrupted by geopolitical dynamics. “I appreciate that these electricity tariffs will not increase. Because we see that today we are experiencing two major challenges. One, the challenge of providing coal supply according to the needs and capacity of PLN’s power plants. Second, the availability of gas supply, because coal and gas are the two main energy sources to drive our power plants today,” Eddy said in a written statement on Wednesday (1/7/2026). Eddy stressed that in a situation where global energy costs are experiencing high volatility and pressure on supply chains is intensifying, the decision to hold electricity tariffs is not merely a populist policy but a crucial economic stabilisation instrument. According to him, without state intervention, an increase in electricity tariffs could potentially trigger a chain reaction affecting inflation, production costs, and public purchasing power. However, the next more fundamental challenge is ensuring that electricity subsidies are truly well-targeted, efficient, and equitable. “What needs to be emphasised is that any electricity price increase, if and when it occurs, must still consider electricity for lower-income communities. Especially those in the 450 VA, 900 VA, and perhaps also 1,300 VA classes. For the industrial sector, particularly small and medium enterprises (SMEs) with a capacity of 2,200 VA, that also needs attention,” he continued. He supports the government in carrying out a comprehensive overhaul of the energy subsidy scheme, using a data-based approach and cross-sector integration. Eddy assessed that the main challenge with subsidies so far is not only the budget size but also the accuracy of distribution and preventing the potential for misdirected subsidies. Furthermore, he underlined that electricity tariff policy must follow the principle of distributive justice, where affluent community groups no longer enjoy subsidies that should be allocated for vulnerable groups. “For the larger groups, I think it is the same as the fuel analogy; Pertamax must indeed be adjusted, Pertamax Turbo adjusted, but Pertalite is maintained. So for SMEs and lower-income communities, it is maintained. In fact, if possible, the electricity discounts they have been enjoying should also be continued,” said Eddy. Eddy also stressed that this momentum must be utilised by the government to transition towards a more sustainable energy policy. Dependence on coal and gas, although still dominant, needs to be gradually reduced through energy diversification and accelerating investment in new and renewable energy. “Going forward, we cannot continuously be in a cycle of holding prices every time pressure occurs. There must be an effort to build an energy system that is more resilient to global shocks, while still ensuring fair energy access for all Indonesian people,” he concluded.