Indonesian Political, Business & Finance News

Government's Sudden Cancellation of Electricity Tariff Discount Draws Surprise, Energy Minister Claims No Knowledge

| Source: GALERT
In a rather surprising move, just days before 5 June 2025, the government suddenly cancelled the electricity tariff discount. The programme had been highly anticipated by the public, and many expressed disappointment at the cancellation.

An equally surprising response came from Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia, who, when asked about the cancellation, admitted he did not know the reasons behind the scrapping of the June-July 2025 electricity tariff discount.

Bahlil asked that the matter be directed to the party that had made the announcement, claiming he had no knowledge of the incentive from the outset.

"Ask the one who announced it. From the beginning when you asked me, I said I had not received confirmation. We did not know," he told journalists in Jakarta on Tuesday (3 June 2025).

"So, that is my answer. I do not know, and I answer that I do not know. Ask the one who announced it," he explained.

The Ministry of Energy and Mineral Resources had previously stated that the policy initiative and the cancellation of the 50 per cent electricity tariff discount did not originate from them.

"We need to convey that the Ministry of ESDM was not involved in the decision-making process," said Ministry of ESDM spokesperson Dwi Anggia.

Dwi Anggia affirmed that as the ministry responsible for the electricity sector, the Ministry of ESDM is always prepared if officially requested to provide input on policies with broad public impact.

"Including policies regarding electricity subsidies and compensation," said Dwi Anggia.

She also noted that both the policy initiative and the cancellation decision fell outside their authority and within the domain of other ministries or institutions.

"Therefore, we fully respect that decision," she said.
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