Government Assures No Increase in Electricity Tariffs for July-September 2026

The government has decided that the electricity tariffs of PT PLN (Persero) for the third quarter, covering the period from July to September 2026, will not increase. This policy applies to 13 groups of non-subsidised customers, even though the tariff adjustment formula indicated that electricity tariffs should have risen.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the decision to maintain electricity tariffs was taken as an effort to protect public purchasing power while supporting national economic stability. “In order to maintain public purchasing power and support national economic stability, the Government has decided that electricity tariffs for the Third Quarter of 2026 will remain unchanged or not increase,” Bahlil Lahadalia said in a written statement on Tuesday, 30 June 2026.

Bahlil explained that the adjustment of electricity tariffs for non-subsidised customers is carried out every three months in accordance with Minister of Energy and Mineral Resources Regulation Number 7 of 2024 concerning Electricity Tariffs Provided by PT PLN (Persero). The tariff adjustment refers to changes in several macroeconomic indicators, namely the rupiah exchange rate against the US dollar, the Indonesian Crude Price (ICP), the inflation rate, and the Reference Coal Price (HBA).

For the determination of electricity tariffs for the Third Quarter of 2026, the government used the realisation of macroeconomic parameters for the period February to April 2026. The parameters used as references include an exchange rate of Rp16,959.32 per US dollar, an Indonesian Crude Price (ICP) of US$96.12 per barrel, inflation of 0.21 percent, and a Reference Coal Price (HBA) of US$70 per tonne in accordance with the Domestic Market Obligation (DMO) policy. Based on the tariff adjustment formula, the accumulated changes in these indicators should have resulted in an increase in electricity tariffs. However, the government chose not to raise tariffs in order to maintain public purchasing power and provide certainty for the business world.

In addition to non-subsidised customers, the government also confirmed that electricity tariffs for 24 groups of subsidised customers will remain unchanged during the July to September 2026 period. The customer groups that continue to receive electricity subsidies include social customers, poor households, small businesses, small industries, and customers who use electricity for micro, small, and medium enterprise (MSME) activities. Thus, all subsidised customers will continue to receive electricity tariffs in accordance with applicable regulations without any adjustment in the third quarter of this year.