"The rumor of an electricity tariff hike is unfounded. The government has no plan to raise electricity tariffs. Moreover, the electricity tariffs for unsubsidized customers have not been increased since 2017," Head of the Communication, Public Information, and Cooperation Bureau of the Energy and Mineral Resources Ministry Agung Pribadi noted in Jakarta on Friday.
Pribadi made the statement in response to an unconfirmed report on social media late last week that the electricity tariffs would be hiked.
Pribadi further pointed out that Rp52 reduction per kilowatt hour (kWh) was given to unsubsidized customers on 900-volt-ampere (VA) electricity capacity to Rp1,352/kWh effective from March 1, 2019, while electricity tariffs for 1,300-VA and above households remained unchanged at 1,467.28 per kWh.
In the meantime, subsidies will continue to be offered on electricity tariffs for some 29 million subsidized customers on 450-VA and 900-VA electricity capacity. Hence, they will only be paying Rp415/kWh and Rp 605/kWh respectively.
He explained that electricity tariffs in Indonesia that adopt a tariff adjustment scheme are yet relatively cheap than those of other ASEAN member states.
"As of May 2019, our electricity tariffs are yet cheaper than those of Thailand, at Rp1,656; the Philippines, at Rp2,437; and Singapore, at Rp 2,546 (per kWh)," he remarked.
On the basis of the energy and mineral resources minister's regulation, electricity tariffs will be adjusted in a case of a change in macroeconomic assumption: the rupiah's exchange rate, Indonesian Crude Price, and inflation.
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Translator: Afut Syafril Nursyirwan, Suhar
Editor: Azizah Fitriyanti
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