Indonesia's Electricity Tariffs Are Among the Cheapest in Southeast Asia

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Reza Pahlevi 13/04/2022 14:00 WIB

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Currently, the average electricity tariff is recorded at Rp1,445 per kWh for non-subsidized household customers.

Comparison of Electricity Tariffs in Indonesia and Several Southeast Asian Countries* (April 2022)

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Indonesia's Electricity Tariffs Are Among the Cheapest in Southeast Asia

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Comparison of Electricity Tariffs in Indonesia and Several Southeast Asian Countries* (April 2022)

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March 2022 PLN data shows that electricity tariffs in Indonesia are relatively cheap compared to other countries in Southeast Asia.

Currently, the average electricity tariff in Indonesia is recorded at Rp1,445 per kWh for non-subsidized household customers.

This figure is lower than the household electricity tariff in Vietnam, which is Rp1,532 per kWh, and Thailand, which is Rp1,597 per kWh.

Household electricity tariffs in the Philippines reach Rp2,421 per kWh, while the highest tariff is in Singapore at Rp2,863 per kWh.

The Russia-Ukraine conflict, which erupted at the end of February 2022, has caused an increase in commodity prices, including crude oil, natural gas, and coal, which has also impacted the rising prices of energy such as electricity and gasoline.

To date, Indonesia's electricity generation mainly still comes from coal-fired power plants (PLTU).

To prevent a significant increase in electricity tariffs, the government has mandated coal companies to allocate 25% of their supply for domestic needs (domestic market obligation/DMO).

The price of DMO coal is set at US$70 per ton, significantly lower than the benchmark coal price (HBA) of US$288.4 per ton in March 2022.

(Also Read: This is the Amount of Fuel for PLN Electricity during 2021)

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."