Indonesia’s Electricity Tariff Becomes the Cheapest in ASEAN

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Claims about electricity tariffs in Indonesia is the cheapest in the ASEAN region came from the Ministry of Energy and Mineral Resources (ESDM). They said that the electricity tariff in Indonesia is still cheaper than in several countries in the ASEAN region.

The claim is based on PLN’s data in March 2022 which shows Indonesia’s electricity tariff is still cheaper and can compete with countries in the ASEAN region.

The Head of the Communication, Information Services and Cooperation Bureau (KLIK) of the Ministry of Energy and Mineral Resources Agung Pribadi in a press release, Wednesday (06/04/2022), said, “We make sure that electricity rates in Indonesia are still relatively cheap compared to other countries in the ASEAN region. “

The current average electricity tariff for non-subsidized household customers (tariff adjustment) is IDR 1,445 per kWh. This tariff is much cheaper than the household electricity tariff in Thailand which reaches Rp. 1,597 per kWh, Vietnam Rp. 1,532 per kWh, Singapore Rp. 2,863 per kWh, and the Philippines Rp. 2,421 per kWh.

As for the Medium Business-TR class, the electricity tariff in Indonesia is set at IDR 1,445 per kWh. This tariff is still cheaper than in Thailand Rp. 1,413/kWh, Philippines Rp. 1,636/kWh, Malaysia Rp. 1,735/kWh, Vietnam Rp. 1,943/kWh, and Singapore Rp. 2,110/kWh.

Furthermore, in the Big Business-TM class, the electricity tariff in Indonesia is the cheapest in ASEAN, which is IDR 1,115/kWh. This tariff is still cheaper than consumers of the same class in Singapore reaching Rp 2,063/kWh, Vietnam Rp 1,787/kWh, Philippines Rp 1,603/kWh, Thailand Rp 1,370/kWh, and Malaysia Rp 1,227/kWh.

In addition, there are tariffs for the type of Industrial Medium-TM users, the electricity tariff in Indonesia is Rp. 1,115/kWh, cheaper than the tariff in Singapore which reaches Rp. 1,922/kWh, the Philippines Rp. 1,567/kWh, and Vietnam Rp. 1,117/kWh. This rate is slightly above Malaysia, which charges Rp. 1,060/kWh and Thailand Rp. 991/kWh.

Meanwhile, the type of large industrial users in Indonesia is Rp. 997/kWh, only slightly higher than Thailand’s Rp. 990/kWh and Malaysia’s Rp. 991/kWh. For the price of this class, Singapore sets a tariff of Rp. 1,863/kWh, the Philippines Rp. 1,559/kWh, and Vietnam Rp. 1,060/kWh.

Agung explained that the cheap electricity tariff in Indonesia is aimed at attracting investors to want to invest in Indonesia so that the business climate in Indonesia can be improved after the pandemic period.