Indonesia's Electricity Tariffs Are Higher Than Malaysia's and Vietnam's

In May 2017, the Indonesian household electricity tariff was Rp 1,467 per kWh (non-subsidized). This is more expensive than the electricity tariffs in Vietnam (Rp 1,268 per kWh) and Malaysia (Rp 1,148 per kWh), based on the exchange rate at the end of April 2017. However, the domestic electricity tariff remains quite competitive and cheaper than in Thailand, Singapore, and the Philippines.

Based on the Regulation of the Minister of Energy and Mineral Resources Number 28 of 2016, users of 900 Volt Ampere (VA) electricity in the Able Household (Rumah Tangga Mampu - RTM) category experienced a three-stage adjustment to the subsidized tariff starting January 1, 2017. For the January-February 2017 period, users of 900 VA electricity were charged Rp 791 per kWh. Then, in the March-April 2017 period, they were charged Rp 1,034 per kWh, and for the May-June 2017 period, the tariff was increased to Rp 1,352 per kWh.

Previously, the plan was to charge the 900 VA electricity tariff for the RTM category at the economic rate of Rp 1,467 per kWh starting July 1, 2017. However, the government ultimately cancelled this plan and will not adjust the tariff until the July-September 2017 period. This means that 900 VA electricity customers will continue to be charged the subsidized tariff of Rp 1,352 per kWh.