Indonesia experiences frequent blackouts due to increasing demand. Electricity tariffs for Industrial & Commercial customers are rising at an average of 7% per year, pushing up companies’ costs.
Indonesia’s C&I tariffs are steadily rising, pushing up companies’ costs
Installed Power Capacity (2021)
- The generation mix driven by coal, followed by oil & gas
- C&I customers represent 56% of total demand
- With frequent outages, the government wants new capacity added (coal and renewables mainly)
Average Electricity Prices, (Industrial User)
- For Regular customers, Electricity tariffs for I&C customers (I-3/B-3 tariff) surged by 7% per year on average in the past 20 years. While in Industrial Estate, the electricity has been escalated by 5% per year
- The government intends to reduce the subsidy by 10%/year, which will lead to faster tariff increases
Government Lead Initiatives:
- RES targets: 19% by 2019, 23% by 2025 and 31% by 2050
- Planned additional capacity of RES by 2025: 5.7 GW
- Committing to cut greenhouse gas (GHG) emissions by 29% by 2030 compared to a business-as-usual (BAU) scenario. There is also an interim target of 26% of reduction by 2020 compared to the BAU.