JustUpdateOnline.com – JAKARTA, The Indonesian government has officially announced that electricity rates will remain unchanged for the first three months of 2026. This price freeze applies to all 13 categories of non-subsidized customers as well as subsidized groups, covering the period from January through March 2026.
By maintaining these rates, the Ministry of Energy and Mineral Resources (ESDM) aims to protect the public’s purchasing power and ensure national economic stability at the start of the year. The policy ensures that low-income households and micro-businesses continue to receive the necessary support through consistent subsidy allocations.
Tri Winarno, the Acting Director General of Electricity at the Ministry of ESDM, explained that while technical calculations based on current economic parameters suggested a potential price adjustment, the government decided to prioritize social stability. He noted that the beginning of the year is often a critical time for household spending and business operations, making price certainty essential.
Regulatory Framework and Economic Indicators
Under the Ministry of ESDM Regulation No. 7 of 2024, electricity tariffs for non-subsidized users are typically evaluated every quarter. These adjustments are calculated based on four primary macroeconomic factors: the rupiah’s exchange rate against the US dollar, the Indonesian Crude Price (ICP), the national inflation rate, and the Reference Coal Price (HBA).
Despite the volatility in these global and domestic indicators, the government has opted to absorb potential costs to keep electricity affordable. This decision reflects a broader commitment to maintaining the sustainability of the national power supply while shielding citizens from price shocks.
Financial Context and Energy Efficiency
The decision to hold rates steady comes at a time of increasing financial pressure on the state utility provider, PT PLN (Persero). Reports indicate that the government’s debt regarding electricity subsidies and compensation surged to Rp78.44 trillion by the end of the first half of 2025. This marks a sharp 81.22 percent increase from the Rp43.29 trillion recorded at the end of 2024.
A significant portion of this debt spike was attributed to a massive 50 percent tariff discount program implemented in early 2025, which cost approximately Rp13.61 trillion.
In light of these figures, the Ministry continues to urge the public to practice energy conservation. Efficient electricity usage is seen as a vital step in supporting Indonesia’s long-term energy security and independence. Currently, electricity pricing in the country remains segmented based on usage characteristics, with different rates applied to residential, commercial, industrial, and government sectors.