The Government Will Raise Electricity Tariffs For Rich People


Electricity tariffs will be adjusted for people with high incomes. This was conveyed by the Minister of Finance, Sri Mulyani. The policy has even received approval from President Jokowi.

Sri Mulyani said that this tariff adjustment was a form of justice. This is because the government does not increase electricity rates for lower-class customers or the poor. Thus, the rich will share the burden with the government which has to increase subsidy spending.

“In a cabinet meeting, the President and the cabinet have agreed that the burden of the household group that can be represented for fiscal electricity subscriptions above 3000 VA may increase the price,” he said at the Banggar meeting, Thursday (19/5/2022).

This increase is also aimed at reducing the burden on the state budget and at the same time protecting the lower class from rising electricity rates.

As for this year, the government will increase the electricity subsidy by Rp 3.1 trillion from the previous Rp 56.5 trillion to Rp 59.6 trillion. Then there is also an additional electricity compensation of Rp 21.4 trillion.

“The price of electricity is only for the segment (3,000 VA) and above (which may go up),” he concluded.

The government plans to increase electricity tariffs for non-subsidized groups.

The non-subsidized PLN customers are divided into 13 groups which are grouped into household customer segments, large businesses, large government industries, and special electricity tariff services.

Energy Watch Executive Director, Mamit Setiawan, said the government must also tighten restrictions on who can receive electricity at subsidized rates. Because, said Mamit, electricity subsidies and compensation are still widely accepted by entrepreneurs and industrial groups.

Mamit gave an example, the ‘capable’ household customers who install 2,200 VA power ideally undergo a tariff adjustment of Rp 50-200 per kWh. “The industrial group must go up,” continued Mamit. The current economic electricity tariff is between Rp. 1,400-1,500 per kWh. However, with subsidies from the Government distributed through PLN, subsidized electricity tariffs are cheaper. People who receive subsidies only need to pay around Rp. 400-600 per kWh.

Previously, Gadjah Mada University energy economy observer Fahmy Radhi said the government could consider adjusting electricity tariffs if the people’s economic capacity had improved.

This is because if the electricity tariff is not adjusted in the long term, it can further burden the state budget in the form of compensation to PLN. Moreover, electricity rates have not been adjusted since 2017, even though the constituent variables have increased.

  • The following are 13 classes of electricity rates per kWh 2022 set by the government:
  • Group R-1/ Low Voltage (TR) 900 VA power or small household, IDR 1,352 per kWh.
  • R-1/TR group with 1,300 VA power or small household, IDR 1,444.70 per kWh.
  • Group R-1/TR 2,200 VA power or small household, IDR 1,444.70 per kWh.
  • Group R-2/ TR power 3,500-5,500 VA or middle household, Rp. 1,444.70 per kWh.
  • Group R-3/TR power 6,600 VA and above or a large household, IDR 1,444.70 per kWh.
  • Class B-2/ TR power 6,600 VA-200 kVA or medium business, IDR 1,444.70 per kWh.
  • Class B-3/ Medium Voltage (TM) with power above 200 kVA or big business, IDR 1,114.74 per kWh.
  • Group I-3/TM with power above 200 kVA or medium-scale industry, Rp1,114.74 per kWh.
  • Group I-4/ High Voltage (TT) with a power of 30,000 kVA and above or large industries, Rp.996.74 per kWh.
  • Group P-1/TR power 6,600 VA-200 kVA or small government office, IDR 1,444.70 per kWh.
  • Group P-2/TM with power above 200 kVA or large government offices, IDR 1,114.74 per kWh.
  • Group P-3/TR for public street lighting, IDR 1,444.70 per kWh.
  • Class L/ TR, TM, TT, or special services, IDR 1,644.52 per kWh.