Next year, Nonsubsidized Customer Electricity Rates Will Be Evaluated Every 3 Months

Jakarta – The government will re-implement non-fixed electricity tariffs (tariff adjustment), for non-subsidized electricity customers starting in 2020, after changing since July 2015 until the end of 2019.

Rida Mulyana, Director General of Electricity at the Ministry of Energy and Mineral Resources (ESDM), said that the decision to re-implement tariff adjustment is the government’s authority so that it does not need to seek DPR approval.

“In 2020. If tariff adjustment does not need to wait for the DPR,” said Rida, at the Ministry of Energy and Mineral Resources Office, Jakarta.
If the tariff adjustment has been implemented, then the non-subsidized customer group electricity tariff will be evaluated every three months. To determine the amount of electricity rates will use the Indonesian oil price formula or Indonesian Crude Price (ICP), inflation and the US dollar (US) exchange rate.

Rida continued, the movement of the three components would determine the increase or decrease in electricity rates every three months. “Please underline, the name tariff adjustment can go up and down (electricity tariffs),” he said.

He also ensured, if the electricity tariff increased, then the possibility of the increase was not directly applied in one period, but was carried out gradually. This is to ease the burden on the people whose electricity rates have increased.

“Even if it goes up, it doesn’t seem to be at the same time, three months in stages,” he added.

According to Rida, the change in non-subsidized electricity tariffs must be approved by the Minister of Energy and Mineral Resources, he pointed out, until the end of 2019, PLN did not get approval to raise non-subsidized electricity tariffs.

“It must be the Minister’s approval. The changes are, yes or no. Until 2019 there are none, so there is no electricity tariff going up. But that 2020 will come back again,” he said.

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