ESDM: Electricity Tariffs Unchanged Since January 2017, Except for Specific Groups

The Ministry of Energy and Mineral Resources (ESDM) has stated that electricity tariffs applicable to the majority of customers have not undergone any increases since 1 January 2017. Adjustments have only been implemented for household customers with capacities exceeding 3,500 VA, as well as electricity tariffs for government agencies, which underwent changes in 2022.

The Acting Director General of Electricity at the Ministry of ESDM, Tri Winarno, noted that the policy of maintaining electricity tariffs for nearly a decade has resulted in an increasing burden of subsidies and compensation that must be borne by the government. “The electricity tariffs currently in effect have basically not experienced an increase since 1 January 2017, except for tariffs for households above 3,500 VA and government tariffs that were adjusted in 2022,” Tri stated during a hearing with Commission XII of the Indonesian House of Representatives (DPR RI) in Senayan, Jakarta, on Thursday.

According to Tri, the absence of long-term tariff adjustments is one of the primary causes for the rising need for electricity subsidies and compensation year after year. ESDM data shows that the total for electricity subsidies and compensation has continued to climb over the last three years. In 2023, the value reached Rp123 trillion; this rose to Rp177 trillion in 2024 and further increased to Rp201 trillion in 2025. “The lack of tariff adjustments over a long period is a major factor causing the burden of both subsidies and compensation to increase annually,” Tri remarked.

For 2026, the government has allocated Rp100.83 trillion for electricity subsidies through the State Budget (APBN). Simultaneously, the requirement for electricity compensation is projected to reach Rp144 trillion. As of April 2026, the realisation of electricity subsidies and compensation reached Rp59.9 trillion, consisting of Rp30 trillion in subsidies and Rp29.74 trillion in compensation.

Tri also revealed that the need for electricity subsidies in 2027 is expected to rise again. The Ministry of ESDM has proposed an electricity subsidy allocation of Rp108.43 trillion to support subsidised customers and maintain the affordability of electricity rates for the public. “For the 2027 budget year, we are proposing a requirement of Rp108.43 trillion for electricity subsidies, targeting 45.91 million customers, with a target for subsidised electricity sales of approximately 83.6 TWh, or 24 per cent of the total projected electricity sales of 348.78 TWh,” he added.

This proposal was drafted alongside projections for national electricity consumption growth and the government’s efforts to ensure affordable energy access. The government continues to utilise electricity subsidies as an instrument to protect customer groups entitled to receive tariff assistance.