Government Ensures No Increase for Electricity, Fuel Tariffs until 2024 June

Jakarta – Indonesian Minister of Economic Affairs Coordination, Airlangga Hartarto, revealed that the Government will not increase electricity tariffs and subsidized and non-subsidized fuel prices until June 2024.

Minister Hartarto said that the decision not to increase electricity tariffs and fuel prices aligns with the decision made during the Cabinet Plenary Session at the Presidential Palace today on Monday.

"It has been decided in the plenary cabinet session that there will be no increase in electricity and fuel tariffs until June (2024), both subsidized and non-subsidized," Minister Hartarto said at the Ministry of Economy in Jakarta on Monday.

The Minister conveyed that with the policy of not raising electricity and fuel tariffs, it will require additional budgets for PLN (State Electricity Company) and Pertamina (State-owned Oil and Gas Company).

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Menteri Koordinator Bidang Perekonomian, Airlangga Hartarto.

Photo :

• VIVA/Maha Liarosh.

"That will require additional budgets for Pertamina and PLN. And, it will take from both the remaining budget surplus and the widening of the budget deficit in 2024," the Minister remarked.

Earlier, Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, said an increase in the prices of non-subsidized fuels, including Pertamax, in early March 2024.

Minister Tasrif stated that the Indonesian Crude Price (ICP) is currently at US$82 per barrel, compared to 2023. Thus, he explained, this increase would affect production cost

"If it's non-subsidized, it follows the oil price index formula, now oil is already at, US$82 per barrel compared to last year there's an increase of around US$6 per barrel. That will definitely affect production costs," Minister Tasrif said some time ago.

The minister mentioned, regarding whether non-subsidized fuel prices will be increased in March 2024, but it depends on the evaluation from Pertamina (Persero).

"Let the businesses evaluate, but they compete with each other," he concluded. 

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"If it's non-subsidized, it follows the oil price index formula, now oil is already at, US$82 per barrel compared to last year there's an increase of around US$6 per barrel. That will definitely affect production costs," Minister Tasrif said some time ago.