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ENERGY – JAKARTA. The government has decided not to raise electricity tariffs, and Fuel Oil (BBM) both subsidized and non-subsidized until June 2024.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated the decision was agreed upon in today's cabinet meeting on Monday (26/2), led by President Joko Widodo (Jokowi).
“It was decided in the plenary cabinet meeting, that there will be no increase in electricity, no increase in BBM until June, both subsidized and non-subsidized,” Airlangga told the media, on Monday (26/2).
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Airlangga stated, that because there is no tariff increase, the government needs to disburse additional budget for PT PLN (Persero) and PT Pertamina (Persero). The additional budget will be fulfilled from the Excess Budget (SAL) and also the widening of the 2024 state budget deficit.
“It will require an additional budget for Pertamina and PLN. It will be taken from the remaining SAL or widening of the budget deficit in 2024,” he revealed.
He added, that the need for additional budget, one of them will affect the 2024 state budget deficit which could potentially widen to 2.3% to 2.8% of Gross Domestic Product (GDP), from the initial agreement of 2.29% of GDP.
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“So it's 2.3-2.8%. Next year also in the same framework 2.4-2.8%, so it's realistic,” he said.
For information, the government has set the electricity tariff for March 2024. The March 2024 electricity tariff was set in conjunction with the announcement of the first quarter electricity tariff in January-March 2024.
The electricity tariff for January-March 2024 was decided not to increase or still be the same as the fourth quarter in October-December 2023. Director General of Electricity, Jisman P Hutajulu said, the government has considerations in setting the electricity tariff for January-March 2024.
"The electricity tariff from January to March 2024 was decided to remain the same to maintain the competitiveness of businesses, maintain the purchasing power of the community and maintain the inflation rate in the new year," said Jisman in December 2023.
