Indonesia Freezes Power Tariffs Through September to Shield Economy and Consumers

JAKARTA, Investortrust.id — Indonesia will keep electricity tariffs unchanged during the third quarter of 2026, shielding households and businesses from higher energy costs as the government prioritizes consumer spending and economic stability amid global uncertainty.

The decision applies to electricity supplied by PT PLN (Persero), Indonesia's state-owned electric utility and sole nationwide power distributor, covering both non-subssidized customers and 24 categories of subsidized users.

Electricity prices are a key driver of inflation and household spending in Southeast Asia's largest economy. By freezing tariffs, the government aims to support consumer purchasing power, ease cost pressures on businesses, and reinforce domestic economic growth despite volatile commodity prices and currency movements.

Energy and Mineral Resources Minister Bahlil Lahadalia said maintaining stable tariffs demonstrates the government's commitment to providing certainty for consumers and businesses.

"To safeguard people's purchasing power and support national economic stability, the government has decided to keep electricity tariffs unchanged for the third quarter of 2026," Bahlil said.

Under Energy Ministry Regulation No. 7 of 2024, electricity tariffs for 13 non-subsidized customer groups are reviewed every three months based on four macroeconomic indicators: the rupiah exchange rate, the Indonesian Crude Price (ICP) benchmark, inflation, and the government's benchmark coal price.

The third-quarter calculation used data from February through April 2026.

During that period, the rupiah averaged Rp16,959.32 per U.S. dollar, Indonesian crude oil averaged $96.12 per barrel, inflation stood at 0.21%, and the benchmark coal price remained at $70 per metric ton under Indonesia's Domestic Market Obligation (DMO) policy, which requires coal producers to reserve supplies for domestic consumption.

Although the pricing formula indicated room for a tariff adjustment, the government opted to keep rates unchanged to preserve economic stability.

The policy also extends to 24 subsidized customer categories, including low-income households, social institutions, small businesses, small industries, and micro, small, and medium-sized enterprises (MSMEs).

"The government is committed to providing reliable, affordable, and equitable electricity," Bahlil said. "Keeping tariffs unchanged is part of our effort to maintain economic stability while ensuring sustainable electricity services."

Darmawan Prasodjo, President Director of PLN, said the utility is prepared to implement the policy while ensuring a stable electricity supply and improving customer service.

"We appreciate the government's decision to maintain electricity tariff stability in the third quarter of 2026 and are ready to implement this policy," Darmawan said. "PLN remains committed to maintaining reliable electricity supply and high-quality service so the benefits of this policy can be felt directly by the public while supporting domestic economic activity."

PLN said customers can access detailed tariff information for the July–September 2026 period through the company's official website.