Average cost of supply in Indonesia 2014-2023

In 2023, the average electricity cost for supply was at 1,599 Indonesian rupiah per kilowatt-hour, indicating a slight increase compared to the previous year. Electricity prices in Indonesia are set by the government and vary by consumer group and sub-group. 

Indonesia offers pre-paid payment for electricity 

The electricity prices in Indonesia follow group tariff structures, which means that consumers pay a higher marginal per kilowatt-hour (kWh) tariff at higher usage levels. Each group pays a different basic charge and utilization charge. The basic charge depends on the installed power, while the power utilization price increases according to monthly usage. To pay the electricity bill in Indonesia, consumers have the option to use prepaid or post-usage payments. The prepaid option allows consumers to pay only for what they use without a minimum charge. The increase in usage of e-wallets for bills and payments in Indonesia means that payments can now be made via purchasing vouchers and online banking.

Setbacks on electricity subsidy plan

Indonesia’s main electricity provider, Perusahaan Listrik Negara (PLN), is owned by the government and controls the country’s electricity transmission and distribution. As a result, independent power producers are obliged to sell electricity to PLN. Nevertheless, PLN relies on electricity subsidies from the Indonesian government to set the electricity price at a low level. Indonesia, known for its large electricity subsidies, took major steps to reduce these in 2013. However, since 2018, Indonesia has re-introduced subsidies to keep its electricity price flat. To accelerate Indonesia’s economic recovery from the economic impact of the COVID-19 pandemic, the government has introduced several electricity relief schemes to relieve the burden on Indonesians. However, this sets back the country’s original plan on reducing subsidies.