Electricity Subsidies and Compensation Rise Annually, Data Shows

The Ministry of Energy and Mineral Resources (ESDM) has stated that the absence of electricity tariff adjustments over a prolonged period is one of the main factors driving the annual increase in electricity subsidies and compensation in Indonesia.

The Acting Director General of Electricity at the Ministry of ESDM, Tri Winarno, noted that current electricity tariffs have remained relatively unchanged since 1 January 2017. Consequently, the burden of subsidies and compensation that must be borne by the government has risen year after year.

‘This is one of the primary factors causing the burden of both subsidies and compensation to continue increasing annually,’ Tri stated during a Hearing Meeting (RDP) with Commission XII of the Indonesian House of Representatives (DPR RI) on Thursday (4/6/2026).

He further presented data showing the continuous increase in total electricity subsidies and compensation over recent years:

• 2020: Rp64.69 trillion

• 2021: Rp73.72 trillion

• 2022: Rp123.13 trillion

• 2023: Rp142.63 trillion

• 2024: Rp177.25 trillion

• 2025: Rp200.19 trillion

For 2026, according to the State Budget (APBN), the electricity subsidy is set at Rp100.83 trillion, with compensation requirements projected at Rp144 trillion. As of April, the realised payment for electricity subsidies and compensation has reached Rp59.9 trillion, consisting of Rp30 trillion in subsidies and Rp29.94 trillion in compensation, he explained.