HOLOPIS.COM, JAKARTA – The Indonesian government has decided to keep electricity prices unchanged for non-subsidized customers from July through September 2026, despite economic indicators that would normally justify a tariff increase.
“Based on the existing tariff adjustment mechanism, the latest economic indicators point to a potential increase in electricity prices. However, the government has decided to keep tariffs unchanged as maintaining economic stability and protecting people’s purchasing power remain the top priorities,” Head of the Government Communications Office Muhammad Qodari said, Holopis.com reported, Tuesday (7/7).
Qodari said the decision was made to help safeguard household spending and provide greater certainty for businesses as they continue to face global economic challenges.
Under regulations issued by the Ministry of Energy and Mineral Resources, electricity tariffs for non-subsidized customers are reviewed every three months based on several economic indicators, including the rupiah exchange rate against the U.S. dollar, the Indonesian Crude Price (ICP), inflation, and benchmark coal prices.
According to government data, the average rupiah exchange rate stood at Rp16,959.32 per U.S. dollar between February and April 2026. During the same period, the Indonesian Crude Price averaged US$96.12 per barrel, inflation was recorded at 0.21 percent, and benchmark coal prices reached US$70 per ton.
Although those indicators met the criteria for a tariff adjustment, the government opted to maintain current electricity prices to support economic stability.
The government also confirmed that electricity tariffs for 24 subsidized customer groups will remain unchanged.
The subsidies continue to cover social institutions, low-income households, small businesses, small industries, and micro, small, and medium-sized enterprises (MSMEs).
Qodari said the decision would also benefit businesses by providing greater certainty for production planning and investment.
“Keeping electricity tariffs unchanged allows businesses to plan production and investment with greater confidence, helping sustain economic activity,” he said.
He added that the government will continue monitoring global and domestic economic conditions before deciding on future electricity pricing policies.
“The government’s priority remains maintaining economic stability, protecting purchasing power, providing certainty for businesses, and ensuring Indonesia’s economic growth remains strong and sustainable,” Qodari said.
