Routine Electricity Purchases for the National Supply Continue to Increase

State Electricity Company (PLN) routinely purchases electricity from other parties to meet national needs.

According to the *PLN Statistics 2021* report, the amount of electricity purchased by PLN has steadily increased over the past nine years, as detailed in the graph.

This electricity purchase appears to have resulted in PLN experiencing an *oversupply*, where the amount of electricity supplied exceeds the amount sold to consumers.

In 2021, for example, PLN produced 182,970 GWh of electricity itself and purchased 106,490 GWh from external sources. Therefore, the total electricity supply of PLN in 2021 reached 289,470 GWh.

Meanwhile, only 257,630 GWh of electricity was sold to customers in 2021. Thus, at the end of last year, there was an excess supply of approximately 31,800 GWh.

This pattern has been observed for the past nine years, with an excess supply ranging from 28,000 to 30,000 GWh per year during the 2013-2021 period.

The Chairman of the Indonesian House of Representatives' Budget Board, Said Abdullah, estimates that PLN's excess electricity supply will increase next year, which will then increase the state's burden.

"If later New and Renewable Energy (EBT) enters, then in 2030 PLN will have a 41 gigawatt oversupply. Imagine if 1 gigawatt, because of the take-or-pay contract, has to pay Rp3 trillion, because per 1 gigawatt (the burden) is Rp3 trillion," said Said in a meeting discussing the 2023 State Budget at the Indonesian House of Representatives building, Jakarta, Monday (12/9/2022).

In response to this issue, the Indonesian House of Representatives' Budget Board agreed to encourage households to increase their electricity subscription capacity so that PLN's excess electricity supply can be absorbed.

"We agree with the government to (encourage customers) from 450 VA to 900 VA, and from 900 VA to 1,200 VA, that's firm," said Said, as reported by *Katadata.co.id*, Tuesday (12/9/2022).