Get Ready Yes, Non-Subsidized Electricity Rates Will Increase in 2022!

Jakarta, CNBC Indonesia The government, in this case the Ministry of Energy and Mineral Resources (ESDM) together with the Budget Agency (Banggar) of the DPR RI, plans to re-implement tariff adjustment (adjusted tariffs) for 13 groups of non-subsidized PT PLN (Persero) electricity customers next year.

In an interview with CNBC Indonesia, Monday (29/11/2021), the Director General of Electricity at the Ministry of Energy and Mineral Resources, Rida Mulyana, said that this plan would be implemented if the Covid-19 pandemic conditions improved.

“In 2022 will it be implemented tariff adjustment? So we agree with Banggar that if Covid-19 improves in the future, hopefully, we will agree with the DPR with Banggar, compensation tariff adjustment given only six months, then adjusted,” he explained to CNBC Indonesia, Monday (29/11/2021).

Tariff adjustment is the electricity tariff for 13 groups of non-subsidized customers of PT PLN (Persero). As a matter of fact, electricity tariffs for this non-subsidized customer group can fluctuate.

This fluctuation occurs every three months, adjusted for three factors, namely the exchange rate (exchange rate), crude oil prices (ICP), and inflation. If these three factors increase, the electricity tariff will also increase. On the other hand, if these three factors decrease, then the tariff can go down.

However, electricity tariffs for 13 groups of non-subsidized customers have not increased since 2017. Rida emphasized that related to this plan, the government and parliament have no intention to reduce subsidies, but encourage subsidies to be more targeted.

“The remaining 13 are non-subsidized, meaning that the tariff should follow the movement or change of the three minimum factors, namely the exchange rate, crude oil prices, and inflation, and are usually adjusted every three months. Has this worked? It used to be done in 2015-2017. called tariff adjustment, even the name automatic tariff adjustment, said Rida.

“But for some reason since 2017 tariff adjustment detained on the grounds of maintaining people’s purchasing power and industrial competitiveness,” he added.

Furthermore, Rida said, with no increase in electricity rates since 2017, this has an impact on the compensation provided by the government to PT PLN (Persero). The compensation fund is also taken from the state budget. This compensation fund is to cover the difference between the economic tariff for non-subsidized customers and the tariff set by the government.

“We hold (tariff adjustment), has an impact on government compensation, because the government’s decision must be based on the state budget,” he said.

In the future, he added, there will be review from tariff adjustment this. In determining tariff adjustment According to him, many parties are involved because this will have an impact on inflation, and others.

“But we, as the Director General, prepare the assumptions of funds and scenarios, the decision is of course to the leadership,” he explained.

Who are the 13 groups of non-subsidized electricity customers? See on the next page…



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