Energy Ministry: Electricity Tariffs in Indonesia Most Stable in Southeast Asia

Energy Ministry: Electricity Tariffs in Indonesia Most Stable in Southeast Asia (esdm)

JAKARTA, NNC – State-owned power company Perusahaan Listrik Negara (PLN) has shown its stability amid ucertain global economic fluctuations.

The government, through the Ministry of Energy and Mineral Resources, has ensured that electricity tariffs for subsidy-receiving customers will not be raised until 2019. The goal is to maintain public purchase power from weakening.

Electricity tariffs in Indonesia, as of June, 2018, are deemed to still be competitive as compared to other countries in Southeast Asia. Data from June 2018 showed that electricity tariffs in Indonesia are quite competitive as compared to the tariffs in Malaysia, Thailand, Singapore, the Philippines, and Vietnam.

“Based on data we collected, we ensure that aside from being competitive, the electricity tariff in Indonesia is also the most stable as compared to other countries in Southeast Asia,” said Agung Pribadi, Head of Communications, Information Services, and Cooperation at the Ministry of Energy.

Average tariffs for 450-VA household customers reach IDR415 per kWh, underprivileged 900-VA customers at IDR586 per kWh, 900-VA financially able household customers at IDR1,352 per kWh, and non-subsidized tariff adjustment customers at IDR1,467 per kWh.

For adjustent tariff, the electricity tariff for non-subsidized customers is converted to around $11per kWh, which is still more affordable than the household electricity tariff of $12.41 per kWh in Thailand, $19.97 per kWh in Singapore, and $18.67 per kWh in the Philippines.

Electricity tariff for medium business customers in Indonesia reach $11 per kWh, the same as in Thailand, and is lower as compared to Malaysia ($13.58/kWh), Singapore ($14.30/kWh), Philippines ($12.23/kWh), and Vietnam ($13.44/kWh).

In fact, for this type of business users, electricity tariffs in Indonesia are among the cheapest in ASEAN, which is at $8.36/kWh, when compared to the same class consumers in Singapore which reaches $14.02/kWh, Vietnam at $11.98 cents/kWh, Thailand at $11/kWh, Philippines at $11.98/kWh, and Malaysia at $9.60/kWh.

In addition, for the type of medium industrial users, the tariffs in Indonesia and Thailand amounted to 8.36 cents US $ / kWh, cheaper than the tariff in Singapore which reached 13.05 cents US $ / kWh, Philippines 11.69 cents US $ / kWh. “This tariff is the same as the electricity tariff of the same class in Thailand, but it is slightly above Malaysia, the tariff is 8.29 cents US $ / kWh and Vietnam is 7.81 cents US $ / kWh,” Agung said. ESDM, Sunday (08/26/2018).

Electric industry users’ electricity tariffs were 7.47 cents US $ / kWh, only slightly higher than Vietnam (7.41 cents US $ / kWh). For this class Singapore sets a rate of 12.72 cents US $ / kWh, Philippines 11.63 cents US $ / kWh, Thailand 8.36 cents US $ / kWh and Malaysia (7.76 cents US $ / kWh).

He added, the Government’s commitment to maintain more competitive tariffs in the coming year. “Try to compare with other countries. Their government has raised electricity rates several times. Meanwhile, we have no tariff changes. We are even optimistic that it will create more competitive tariffs if the 35,000 MW program runs according to target,” he added.