Indonesia to Reintroduce Electricity Discounts for Low-Power Users Starting June
Jakarta. The government is set to reintroduce electricity bill discounts for low-power households starting June 5, as part of a broader stimulus package aimed at boosting purchasing power
“This time, we are focusing on customers with power usage below 1,300 VA. Previously, the policy applied to users up to 2,200 VA,” Chief Economic Affairs Minister Airlangga Hartarto told reporters at his office on Friday.
The upcoming policy will be announced alongside five other stimulus measures, including discounts on airfares and toll road tariffs, wage subsidies, food aid, and incentives for workplace accident insurance contributions.
In the first two months of 2025, the government had already allocated Rp 13.6 trillion to provide a 50 percent discount on electricity bills for PLN customers with power usage ranging from 450 VA to 2,200 VA. That round of subsidies benefited around 81.4 million customers, comprising 24.6 million users with 450 VA, 38 million with 900 VA, 14.1 million with 1,300 VA, and 4.6 million with 2,200 VA.
Deputy Finance Minister Suahasil Nazara noted that the policy had a significant impact on inflation, particularly on the administered price component, which is directly affected by government-set prices such as electricity tariffs.
According to the Central Statistics Agency (BPS), the administered price component saw a monthly deflation of 7.38 percent and an annual deflation of 6.41 percent in January 2025, followed by 2.65 percent monthly deflation and 9.02 percent annual deflation in February 2025.
“When electricity prices drop, it directly lowers the administered price inflation. This decline in administered price inflation is a direct effect of the government’s policy,” Suahasil said.
Electricity tariffs have been among the key contributors to Indonesia’s inflation trends in early 2025. BPS reported that overall inflation in April reached 1.17 percent, driven in part by rising electricity rates and gold prices. The upcoming discount initiative is expected to mitigate future inflationary pressures as the government moves to normalize power tariffs in the second half of the year.
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