There is a 12 Percent VAT, Minister of Energy and Mineral Resources Ensures Electricity Tariffs Will Not Increase

Jakarta – The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, assured that there will be no increase in electricity tariffs at the beginning of 2025, even though the Value Added Tax (VAT) will rise to 12 percent that year.

“Still the same (electricity rates in Q1-2025), still the same (not increasing),” said Bahlil when met at the BPH Migas Office, Jakarta, written on Friday (20/12/2024).

On the other hand, the Government through PT PLN (Persero) will provide a 50 percent discount on electricity tariffs for two months, specifically in January-February 2025.

This electricity tariff discount is for customers with an electricity capacity between 450 VA and 2,200 VA. This policy was implemented in response to the increase in the VAT rate, which has been set at 12 percent, and will take effect on January 1, 2025.

Overall, this electricity tariff discount is targeted at 81.4 million PLN customers. The details include 24.6 million customers with a power capacity of 450 Watts, 38 million customers with a power capacity of 900 Watts, 14.1 million customers with a power capacity of 1,300 Watts, and 4.6 million customers with a power capacity of 2,200 Watts.

In addition, this electricity tariff discount will also apply to both prepaid and postpaid customers. PLN will adjust the bills for each registered customer.

Previously, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, admitted to directly monitoring the preparations to support the smooth celebration of Christmas and New Year 2024/2025, especially in terms of energy availability and disaster management.

Bahlil mentioned that there are four main aspects that have been thoroughly prepared to ensure that this celebration runs smoothly and safely.

“We have just finished checking the preparations for the Christmas and New Year posts, particularly in 4 aspects,” said Bahlil when met at the BPH Migas office, Thursday (19/12/2024). The first aspect of concern is the availability of fuel oil (BBM).

According to Bahlil, the government ensures that the supply of fuel will be sufficiently available, even for remote areas or those classified as 3T (underdeveloped, frontier, and outermost). This is important to avoid disruptions in travel and community activities during the celebrations.

Next, the second aspect, the availability and certainty of electricity supply.The government strives to ensure a smooth electricity supply, supporting various community activities during the Christmas and New Year celebrations, and avoiding potential power supply disruptions that could disrupt the festivities. Third, the aspect of liquefied petroleum gas (LPG) availability.

Bahlil ensured that the supply of LPG was sufficient so that the public would not experience difficulties in meeting their household energy needs during the celebrations.

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