Indonesia’s Energy Ministry to Announce Electricity Tariff Adjustment in April 2023


The Indonesian Ministry of Energy and Mineral Resources (ESDM) has announced that it will adjust the electricity tariff or tariff adjustment in April. However, at present, the plan to adjust the electricity tariff is still under discussion.

The Director General of Electricity at the Ministry of Energy and Mineral Resources, Jisman P. Hutajulu, stated that the government will soon announce whether the electricity tariff in April will increase or decrease. However, he did not specify the exact date of the announcement.

The electricity tariff adjustment is a regulation that evaluates the price of electricity every three months.

The determination of whether the basic electricity tariff will increase or not in the tariff adjustment is following a formula that considers several factors, such as the exchange rate of the rupiah to the US dollar, the average price of Indonesian crude oil (ICP), and the benchmark price of coal.

Previously, the Ministry of ESDM set the electricity tariff for the January-March 2023 period for 13 non-subsidized customers from January 1 to March 31, 2023, with no changes.

This was done to maintain the purchasing power of the community and consider the current conditions, especially those that do not support continuing the implementation of the tariff adjustment.

Meanwhile, the government’s policy regarding electric motorcycle subsidies of IDR 7 million per unit will begin on March 20, 2023. This incentive will be given to 200,000 electric motorcycle units and 50,000 conversion motorcycle units.

The Committee for the Eradication of Lead-Based Gasoline (KPBB) appreciates the government’s move, saying that it will provide many benefits and encourage electric motorcycle buyers.

The government itself targets that emission-free two-wheeled vehicles can reach a population of 1.2 million in 2024.

According to the Executive Director of KPBB, Ahmad Safrudin, there are several advantages to providing electric motorcycle subsidies.

First, it saves IDR 27.5 trillion to IDR 55 trillion in foreign exchange for fuel imports. The subsidy for electric motorcycles of IDR 7.8 trillion is said to be able to save the country’s foreign exchange 3.5 to 7 times the total amount of the subsidy.

In addition, providing electric motorcycle subsidies can be a solution to reduce the burden of medical expenses borne by the community.

According to data from the Ministry of Environment and Forestry, in 2010, the people of Jakarta had to pay medical expenses due to air pollution amounting to IDR 38.5 trillion per year.