Government Plans to Simplify Electricity Tariff Classification

The government plans to simplify the classification of Basic Electricity Tariffs (BET) into three categories. First, subsidized electricity customers (450-900 VA). Second, non-subsidized electricity customers with capacities of 4,400 VA and 13,000 VA. Third, non-subsidized customers with capacities of 13,000 VA and above (loss stroom).

Currently, the electricity tariff for subsidized customers with 450 VA capacity is Rp 415 per kWh, meaning they still receive a subsidy of Rp 1,052.28 per kWh from the economically-based tariff of Rp 1,467.28 per kWh. Meanwhile, the tariff for subsidized customers with 900 VA capacity is Rp 605 per kWh, or they still receive a subsidy of Rp 862.28 per kWh. Electricity customers with 900 VA capacity who are non-subsidized (Affluent Households/RTM) are charged Rp 1,352 per kWh and actually still receive a subsidy of Rp 115.28 per kWh.

For electricity customers with capacities of 1,300 VA and above, the economically-based tariff of Rp 1,467.28 per kWh is already applied. The slowdown in the domestic economy throughout 2017 and the decline in public purchasing power led the government to implement a policy of not increasing electricity tariffs and subsidized fuel prices until the end of the year.