Indonesian government plans to reduce domestic power tariff

Indonesian government plans to reduce domestic power tariff

The Indonesian Energy and Resources Minister announced that the government
will reduce electricity tariffs. For this purpose, the government will not
introduce any price hikes by the end of 2017 and will also increase the
efficiency of the state-held firm Perusahaan Listrik Negara (PLN).

The government also announced the revocation of the subsidy for 900-VA
subscribers (about 4.5 million customers) but not for 450-VA subscribers,
which are subsidies based on TNP2K data. The rationale behind the subsidies
lift is to encourage the equal distribution of electricity throughout the
country and use the funds in order to increase the electrification of rural
areas.

Previously, the 900-VA household customers had tariff increases in January
2017, in March 2017 and in May 2017. It went from IRup 605/kWh (US$4c) up to
IRup 791/kWh in January. In March, the tariff was raised again to IRup
1034/kWh, and in May, the price went up to IRup 1352/kWh (US$10c). There was
an increase planned up to IRup 1467/kWh for July but it is now cancelled.

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Link to Original Article:
https://www.enerdata.net/publications/daily-energy-news/indonesian-governmen
t-plans-reduce-domestic-power-tariff.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com