Power Purchase Down; Govt Decides No Hike in Electricity Tariffs

TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry announced there would be no changes to electricity tariffs in the second quarter of 2020. The ministry takes into account the declining public purchasing power and industrial competitiveness.

The Ministry's chief of the Communication, Public Information Services and Cooperation Bureau, Agung Pribadi, said that the four macro parameters used to decide on tariffs are actually suggesting adjustments. "However, the government will keep the current electricity tariffs and not raise them in the April-June period, in order to maintain purchasing power and competitiveness," he said in a press release, Tuesday, March 3, Bisnis.com reported.

From November 2019 to January 2020, the quarterly macroeconomic parameters showed stable rupiah exchange rates against the US dollar, the Indonesian crude price (ICP), the average inflation rate, and the benchmark coal price.

With the decision, the electricity tariff for the second quarter of this year remains the same as in Q1.

The Energy Ministry asked PLN to continue working on operational efficiency measures and spur electricity sales more aggressively.

The ministry's director of electricity business development, Hendra Iswahyudi, said the government also sets a faster and more transparent electricity tariff scheme in order to stimulate Indonesia's ease of doing business (EODB) ranking by means of getting electricity.

Energy Minister's Regulation No.28/2016 on the electricity tariffs provided by PLN stated that tariff adjustments are carried out every three months if there is a change—either an increase or decrease—in the factors affecting Electricity Supply Costs (BPP).

BISNIS