Government holds electricity tariffs steady to protect public purchasing power

The government is maintaining electricity tariffs for 13 non-subsidised customer groups in the third quarter of 2026 to protect public purchasing power amid global economic dynamics. “For the government, the main priority is to provide certainty and peace of mind for the public. One way is by not raising electricity tariffs in the third quarter of 2026,” said Head of the Government Communication Body (Bakom) RI, Muhammad Qodari, in a written statement in Jakarta on Monday. Qodari explained that the decision was taken even though, based on the adjustment mechanism and developments in several economic indicators, electricity tariffs actually had the potential to increase. “If referring to the applicable tariff adjustment mechanism, changes in these various indicators actually point to an increase in electricity tariffs. However, the government decided not to implement a tariff adjustment because maintaining economic stability and public purchasing power is the top priority,” he said. According to him, the setting of electricity tariffs for non-subsidised customers refers to Minister of Energy and Mineral Resources Regulation Number 7 of 2024. This regulation evaluates tariffs every three months based on developments in the rupiah exchange rate, the Indonesian Crude Price (ICP), inflation, and the reference coal price. Based on data from the Ministry of Energy and Mineral Resources for the period February to April 2026, the rupiah exchange rate was in the range of Rp16,959.32 per US dollar, the ICP price was 96.12 US dollars per barrel, inflation was 0.21 percent, and the reference coal price was 70 US dollars per tonne. In addition to maintaining tariffs for non-subsidised groups, the government also ensured that electricity tariffs for 24 subsidised customer groups remain unchanged. The subsidy is still provided to social customers, low-income households, small business operators, small industries, and MSMEs. “This decision also provides certainty for the business world. With stable electricity tariffs, business operators can be calmer in planning production and investment activities, so that economic activity can continue to run well,” said Qodari. He added that the government will continue to monitor global and domestic economic developments to ensure every policy remains on target and provides real benefits for all levels of society.