There will be no price adjustment in electricity tariffs for industry and business sectors. This is a form of the government's concern to support the domestic business and industryJakarta (ANTARA) - The government has maintained the special electricity tariff for the business and industrial sectors despite making tariff adjustments in other sectors to encourage post-pandemic national economic recovery.
President director of state-run electricity company PT PLN Darmawan Prasodjo said the electricity tariff for business and industrial sectors has been maintained since they serve as a driving force and foundation of the Indonesian economy.
"There will be no price adjustment in electricity tariffs for industry and business sectors. This is a form of the government's concern to support the domestic business and industry," Darmawan noted here on Monday.
In addition to encouraging national economic recovery, the decision to maintain the electricity tariff for business and industrial sectors is aimed at keeping inflation at a low level.
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Based on data from the Ministry of Energy and Mineral Resources, the number of customers in the non-subsidized electricity tariff class for businesses with 6,600 VA (Volt Ampere) to above 200 kVA power has reached 697,593. Meanwhile, the number of customers in the industrial customer class (above 200 kVA to above 30,000 kVA) has reached 14,848.
On Monday, the government officially announced electricity tariff adjustments for household customers (above 3,500 VA) and government segment customers (6,600 VA to above 200 kVA power), starting July 1, 2022.
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The government informed that the policy to increase the electricity tariff will have an inflationary impact of only 0.019 percent and have the potential to save compensation by as much as Rp3.1 trillion, or 4.7 percent of the total compensation that the government has disbursed to PLN.
In 2022, the potential electricity compensation is projected to reach Rp62.82 trillion. In terms of the distribution per sector, the industrial sector will account for the largest share at Rp31.95 trillion or 50.9 percent, followed by the household sector (Rp18.95 trillion or 30.2 percent), the business sector (Rp10.84 trillion or 17.3 percent), and government and special services (Rp1.08 trillion or 1.7 percent).
Director-general of electricity at the Ministry of Energy and Mineral Resources Rida Mulyana asked PLN to improve efficiency to reduce the supply cost by increasing sales and converting diesel power plants to natural gas power plants or new renewable energy (EBT).
"If the supply cost is reduced, the tariff will be cheaper as well. It could benefit the community and the state budget in the midst of global pressure from rising oil prices," Mulyana explained.
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Translator: Sugiharto Purnama, Resinta S
Editor: Fardah Assegaf
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