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Government Holds Off on Electricity Tariff Increase Until the End of 2025

The Indonesian government maintains PLN electricity tariffs unchanged until the end of 2025 to protect citizens’ purchasing power and economic stabili
Government Holds Electricity Tariff Increase Until the End of 2025
Source: Source/Illustration jejaknesia.com

Jejaknesia.com - On September 25, 2025, the Ministry of Energy and Mineral Resources (ESDM) announced that PLN electricity tariffs would not increase for the October to December 2025 period. This decision applies to all customer categories—household, business, industrial, and social.

PLN Electricity Tariff Details for October–December 2025

Household Category

  • R-1/TR 900 VA: Rp 1,352 per kWh
  • R-1/TR 1,300 VA: Rp 1,444.70 per kWh
  • R-1/TR 2,200 VA: Rp 1,444.70 per kWh
  • R-2/TR 3,500–5,500 VA: Rp 1,699.53 per kWh
  • R-3/TR > 6,600 VA: Rp 1,699.53 per kWh

Business and Industrial Category

  • B-2/TR (6,600 VA – 200 kVA): Rp 1,444.70 per kWh
  • B-3/TM,TT (>200 kVA): Rp 1,114.74 per kWh
  • I-3/TM (>200 kVA): Rp 1,114.74 per kWh
  • I-4/TT (>30,000 kVA): Rp 996.74 per kWh
  • P-1/TR (6,600 VA – 200 kVA): Rp 1,699.53 per kWh
  • P-2/TM (>200 kVA): Rp 1,522.88 per kWh
  • P-3/TR (street lighting): Rp 1,699.53 per kWh
  • L/TR, TM, TT: Rp 1,644.52 per kWh
Note: These rates are exactly the same as the previous quarter (July–September 2025). No changes in figures.

Why Didn’t the Electricity Tariff Increase?

By the tariff adjustment mechanism, electricity tariffs should follow macro indicators such as the exchange rate, Indonesia Crude Price (ICP), and inflation. However, according to Acting Director General of Electricity Tri Winarno, if the mechanism were fully applied, electricity rates should have increased. The government decided to hold the increase to maintain people’s purchasing power.

Impact of the Fixed Tariff Decision

For Households

Stable tariffs provide certainty in monthly expenses. For middle to lower-income families, stable electricity costs are crucial to avoid inflationary pressure.

For MSMEs

Many small business owners—such as tailors, welders, and frozen food sellers—are highly dependent on electricity. If rates rise, production costs would soar. With stable tariffs, MSMEs can breathe easier and maintain profit margins.

For Industry

Large industries, especially manufacturing, bear heavy electricity costs. A fixed tariff gives them breathing space, although concerns remain that subsidy burdens could impact the national fiscal balance.

Narrative Case Studies

Mrs. Sari’s Family in Bekasi

Mrs. Sari, a homemaker with two children, pays around Rp 350,000 monthly for electricity. If the rate rose by 10%, this would add Rp 35,000. For some, this may seem small, but for her family, that extra cost could reduce daily groceries. With stable tariffs, she feels more at ease.

Frozen Food MSME

Mr. Doni, owner of a small home-based frozen food business, relies on freezers running 24 hours. Electricity is his biggest operational cost. If rates spiked, profit margins could disappear. The stable tariff news is a “breath of relief” for him.

Brief History of Electricity Tariff Adjustments

In the past five years, electricity tariff adjustments have often been a sensitive issue. In 2022, rates for non-subsidized groups rose in line with global oil prices. However, since the pandemic, the government has frequently held back increases to preserve social stability.

As an observer, I see this decision as a compromise step. Socially, it prevents potential price shocks. Fiscally, it adds subsidy burdens. The big question remains: how long can the government maintain this strategy without straining the state budget (APBN)?

Electricity Saving Tips for the Public

  • Use energy-efficient electrical appliances.
  • Turn off lights and electronics when not in use.
  • Utilize natural daylight during the day.
  • Set your AC at an optimal 24–26 degrees Celsius.

2026 Projection

The first quarter of 2026 will be critical. If the rupiah weakens or global oil prices rise, tariff hikes are possible. The government may continue to hold rates, but fiscal burdens will increase. Transparency and accountability will be key.

PLN’s electricity tariff freeze until December 2025 is good news for the people. However, behind it lies a major challenge: subsidy burdens. This policy is a double-edged sword—protecting citizens while testing the resilience of national finances.

References:

  • kompas.com
  • cnbcindonesia.com