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ESDM Minister Signals Hike in Electricity Tariff This Year

Translator

Dewi Elvia Muthiariny

Editor

Petir Garda Bhwana

14 April 2022 08:47 WIB

Minister of Energy and Mineral Resources Arifin Tasrif prepares to take a group photo after the inauguration of the ministers of the Forward Indonesia Cabinet on the Veranda of the Merdeka Palace, Jakarta, Wednesday, October 23, 2019. ANTARA PHOTO/Wahyu Putro A

TEMPO.CO, Jakarta - Energy and Mineral Resources (ESDM) Minister Arifin Tasrif sent a signal on the increase in electricity tariff during a working meeting with the House of Representatives (DPR) Commission VII on Wednesday, April 13.

“In the near future, the 2022 tariff adjustment will be carried out so there will be a compensation savings of Rp7-16 trillion,” said Arifin.

Electricity price adjustment is a mechanism to change and determine the increase or decrease in electricity rates following changes in four macroeconomic parameters which are recorded on average per three months. 

The four parameters are the rupiah exchange rate, the Indonesian Crude Price (ICP) or national oil reference price, the coal reference price, and the inflation rate.

With the tariff adjustment policy, the government will save electricity compensation totaling Rp7-16 trillion. On the other hand, if the tariff is not increased, the compensation will reach Rp7-16 trillion.

Until now, the state-owned electricity giant PLN maintained the electricity tariff below the economic price.

Read: Govt Claims Indonesia Has Lowest Electricity Tariff in ASEAN

BISNIS.COM

electricity tariffESDMEnergyPLN


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