- The government has recently cancelled the tariff adjustment plan on the usage of electricity power in 900 Volt-Ampere (VA) category for capable households (“900 VA-RTM”) which was originally planned to be implemented on 1 January 2020. Instead, the government will conduct data verification on the customers of 900 VA-RTM so that the future tariff adjustment will be appropriately implemented.
- Currently, the tariff for 900 VA RTM is being subsidized to be at the rate of IDR 1.352/kWh with no plan of increasing the subsidy. Instead, the government encourages the State Electric Company (Perusahaan Listrik Negara/PLN) to increase efficiency by reducing the consumption of oil fuel at their power plants.
- Furthermore, the government also aims to extend the implementation of domestic market obligation (“DMO”) of coal in order to maintain the electricity tariff. The DMO is currently determined at the rate of 25% from the amount of production of coal with the price is set at USD 70/ton. (setkab.go.id)
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