Indonesia’s Ministry of Energy and Mineral Resources confirmed on August 3 that electricity tariffs for state utility PT PLN (Persero) will remain unchanged through September, continuing a rate freeze first set for the third quarter. The decision holds prices steady for both subsidized and non-subsidized customers even though the government’s own tariff formula pointed toward a possible increase.
Key Facts At A Glance
- Tariffs for Q3 2026 (July–September) remain at the same level set on July 1, 2026, with no change effective August 1
- Freeze applies to all 13 non-subsidized customer categories and 25 subsidized categories
- Sample rate: R-1 900VA households pay Rp1,352 per kWh; R-1 1300VA households pay Rp1,444.70 per kWh
- Tariff evaluation for non-subsidized customers occurs every three months under Ministerial Regulation No. 7 of 2024
- The Q3 2026 calculation used realized macroeconomic indicators from February–April 2026
- Energy Minister Bahlil Lahadalia said the freeze is intended to protect household purchasing power and support national economic stability
- Underlying formula parameters reportedly showed room for a tariff increase, but the government opted to absorb the cost instead
Indonesia’s electricity tariffs for the third quarter of 2026 will not rise, the Ministry of Energy and Mineral Resources (ESDM) said, extending a freeze that has now held through three consecutive quarters. The non-subsidized tariff schedule, which by regulation is reviewed every three months, applies to 13 customer categories and is calculated using four macroeconomic indicators: the rupiah exchange rate against the US dollar, the Indonesian Crude Price, the inflation rate, and the coal reference price, or Harga Batubara Acuan.
For the July–September period, the government used realized indicator data from February through April 2026. Energy Minister Bahlil Lahadalia said the decision to hold tariffs steady was made to maintain public purchasing power and support national economic stability amid global economic dynamics, despite formula calculations that technically opened room for an increase.
Reported readings of the underlying parameters varied across sources. One account listed the rupiah exchange rate at Rp16,743.46 per US dollar, the Indonesian Crude Price at $62.78 per barrel, inflation at 0.22 percent, and the coal reference price at $70 per ton. A separate report cited a rupiah rate of Rp16,959.32 per US dollar and an Indonesian Crude Price of $96.12 per barrel for the same quarter, alongside inflation of 0.21 percent and an identical $70 per ton coal reference price. The discrepancy in the exchange rate and crude price figures was not resolved across available sources.
Under the freeze, sample residential rates remain at Rp1,352 per kWh for R-1 900VA customers and Rp1,444.70 per kWh for R-1 1300VA customers. The freeze applies uniformly to both non-subsidized customers, who are subject to the automatic tariff adjustment mechanism, and the 25 categories of subsidized customers, including households, businesses, industrial users, and social institutions.
Officials from PLN and ESDM framed the decision as consistent with prior quarters, in which government tariff support has repeatedly offset upward pressure from currency, fuel, and coal price movements. Publicly available reporting did not specify the fiscal cost of absorbing the gap between the formula-calculated rate and the frozen rate, nor did it detail how the subsidy shortfall would be funded for the remainder of the quarter.