Indonesian Electricity Tariffs Have Remained Unchanged for Almost 10 Years

The Ministry of Energy and Mineral Resources (ESDM) has disclosed that basic electricity tariffs have essentially remained unchanged for nearly a decade. This stability has contributed to the rising burden of electricity subsidies and compensation that the government must bear.

Tri Winarno, the Acting Director General of Electricity at the Ministry of ESDM, stated that current electricity tariffs have remained relatively unchanged since 1 January 2017, with the exception of tariffs for households exceeding 3,500 Volt Ampere and government tariffs, which were adjusted in 2022. Speaking during a Hearing Meeting with Commission XII of the Indonesian House of Representatives (DPR RI) on Thursday, he noted that the lack of tariff adjustments over such a long period is a major factor driving the year-on-year increase in electricity subsidies and compensation.

He further explained that the total cost of electricity subsidies and compensation has continued to climb in recent years. In 2023, the value reached IDR 123 trillion, rising to IDR 177 trillion in 2024, and further increasing to IDR 201 trillion in 2025. For 2026, according to the State Budget (APBN), the electricity subsidy is set at IDR 100.83 trillion, with compensation needs projected at IDR 144 trillion. As of April, the realised payment for electricity subsidies and compensation has reached IDR 59.9 trillion, consisting of IDR 30 trillion in subsidies and IDR 29.94 trillion in compensation.