Electricity tariffs in Indonesia

The government electricity monopoly, PLN, sets the prices for electricity.

These are set via the Regulation of the Ministry of Energy and Mineral Resources, 28/2016. According to the regulation, tariffs are divided into eight uses:

• (R)umah tangga (residential)
• (S)osial (includes private schools and hospitals (classed as social commercial), and religious buildings, religious schools (classed as purely social))
• (B)isnis
• (I)ndustri
• (P)emerintah (government), including street lighting
• (T)raksi (traction), which is 200kVA+, and used exclusively for powering trains by the KAI state train company
• (C)urah (bulk), the tariff used by village electricity cooperatives
• (L)ain — others, for certain special industrial/business purposes

Each tariff has a suffix, TR (0–200 kVA), TM (200–30,000 kVA), or TT (30 MVA+), meaning tegangan rendah/menengah/tinggi (low/medium/high voltage). For most purposes, this will be TR. VA (volt amp) is not quite the same as a Watt, but is somewhat interchangeable.

Apart from the suffix, each category is divided into one or more numbered categories. These numbers don’t really mean anything, but the lower numbers are for lower power, and the numbers are not consistent across categories, e.g., S1 is 220VA only, while R1 is 220VA through to 2200VA. In addition, the R1 category has four different prices depending on the specific installed power, so it’s best to ignore the suffix number, and just treat the price as set based on the installed capacity.

The tariffs are essentially in two categories — those with a floating price, which is subject to possible update every 3 months (often they are NOT updated, this is at discretion of the minister), and those with a fixed price, not subject to update without a complete overhaul of the law, and hence still following 2016 values.

In theory a complex formula exists to set the floating prices, however the second update to the regulation (which has been updated four times, only ever to change the categories subject to floating tariff), allows the minister to override this. Therefore the complex formula based on rupiah prices and oil prices is basically irrelevant.

In the below table, for electricity prices from 1 July 2022, it can be seen that (R)esidential electricity pays the highest prices, while businesses up to 5500VA enjoy massive subsidies and (semi) permanently frozen prices. Since it is common for businesses to be registered as R, then it is important for small businesses to correct this, to avoid suffering heavy losses. Furthermore, businesses do not pay PPN (11% VAT) on electricity, which is only paid by residential customers with meters of at least 7700VA. Note that ONLY the tariffs in red are subject to adjustment. At the most recent adjustment, of June 2022, only the R 3.5kVA+ tariff and the P tariffs were increased, while all others were effectively awarded subsidies. Thus the red prices were NOT increased, even though it was an option to do so (the prices in black could not have been increased).

A different tariff applies for POSTPAID meters of 220VA, 450VA, and 900VA (excluding 900VA RTM), only. These consist of a monthly charge plus a charge per kWh, which is progressive, so the first 20 or 30 (etc) kWH are charged at a lower price, then a middle price, and finally a third price (which is still heavily subsidised):

There is a third type of tariff, which applies for industrial users over 14kVA, and for other uses over 200 kVA. I don’t pretend to understanding the reactive charge, but I believe it amounts to around 60% of the normally calculated usage. This could be wrong, however….

For floating prices (in red above), you can check the latest prices at: https://web.pln.co.id/pelanggan/tarif-tenaga-listrik/tariff-adjustment

They will not publish the prices for the fixed-at-2016-rates tariffs, only the ones that are updated.

Change of tariff and meter.

In general it is possible to reduce your installed power (free of charge), and increase it. Increases cost approximately 1000 rp per watt (e.g., 2200W to 3500W = 1.3 million rupiah), however there are frequent promos which can be used to cut the cost. Just search for ‘promo naikkan daya pln’ to see if there is a current promo.

When first installing a meter it will likely be cheaper to install at a lower rate, and subsequently upgrade, than to pay up front for a huge capacity.

Upgrades, and changes from residential to business (etc.) can be done online, using the PLN app (available on your mobile phone, install from the app store). You will need the IDPel (subscriber number), and meter number, to register. These are on your bill (if you pay monthly), or on the meter itself.

PPJ (street lighting tax) or PBJT (specific goods and services tax)

PPJ or street lighting tax is charged on electricity, per UU 28/2009. As per UU 1/2022, this changes to a ‘specific goods and service tax’, or PBJT (pajak barang dan jasa tertentu). This is not charged on government, and state entities. PPJ is set at a maximum of 10%, and is regulated by local regulation, and the PPJ doesn’t imply you will actually have any street lighting anywhere nearby, it’s just a source of local government tax revenue.

The PPJ for example in Badung, Bali is flat 5%, in Langkat, North Sumatra is flat 10%, whereas for Jakarta it is set at:

• 2.4% for social
• 2.4% for residential up to 2200VA,
• 3% for residential 3500VA to 5500VA
• 4% for residential 6600VA+
• 2.4% for business to 1300VA
• 3% for business 2200–5500VA
• 4% for business 6600VA-200kVA
• 5% for business 200 kVA+
• 3% for all others

Note that for residential electricity, PPN is not charged on PPJ.