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Starting January 1, 2017, Perusahaan Listrik Negara (PLN), the Indonesian state electricity company, implemented a policy to revoke electricity subsidies for 900 Volt Ampere (VA) users. Of the 23.1 million 900 VA electricity customers, only 4.1 million will continue to receive subsidies. This means that 18.8 million customers will be charged the standard tariff. Meanwhile, 23.2 million customers using 450 VA electricity will continue to receive subsidies.
The withdrawal of subsidies for 900 VA electricity customers has been ongoing since the beginning of the year, with tariff increases of approximately 30 percent every two months. Therefore, starting July 1st, customers deemed ineligible for subsidies will automatically have their tariffs adjusted monthly, similar to the other 12 non-subsidized tariff categories.
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