Government Discusses Plan for Continued Electricity Tariff Discount

The government has begun discussing the continuation of the effectiveness of electricity tariff discounts, to be re-implemented as part of an economic stimulus package in the third and fourth quarters of this year.

Riznaldi Akbar, Senior Policy Analyst at the Directorate General of Economic and Fiscal Strategy (DJSEF) of the Ministry of Finance, explained that the economic stimulus during the Christmas and New Year (Nataru) period aims to boost domestic consumption to keep national economic growth stable at 5 percent.

Riznaldi's statement said that the economic stimulus components essentially continue the policies previously implemented in the first and second quarters of 2025, such as transportation tariff discounts and the Wage Subsidy Assistance (BSU).

The government also once provided a 50 percent electricity tariff discount in January and February 2025, applicable to PT PLN household customers with 450 VA, 900 VA, 1,300 VA, and 2,200 VA power.

"It's not actually a new policy, it's almost the same as in the first and second quarters last year. So it's a continuation of previous policies. For example, if there was an electricity discount before, there is also for tickets, and BSU (Subsidi Bahan Bakar Umum) is still present in the second quarter," said Riznadi during the International Battery Summit 2025 on Wednesday (6/8).

Electricity tariff discount policy was once planned to be re-established in the second quarter of 2025, but finally canceled. Initially, the electricity tariff discount would be implemented at 50 percent for households below 1,300 VA throughout June-July 2025.

The reason the policy was not implemented in the second quarter of 2025, Riznaldi continued, the Ministry of Finance is still reviewing its effectiveness on the economy.

"Electricity discount is in the first quarter, in the second quarter if you look there's none, because we are still monitoring its effectiveness. Because it's big, the stimulus package is big," he said.

Moreover, according to him, the government is still in the process of paying compensation to PT PLN (Persero). Therefore, he mentioned that the certainty of the electricity tariff discount incentive will be released again in the third and fourth quarter 2025 stimulus package is still under discussion.

"Actually, we still have a payment process, with DJA (Directorate General of Budget), PLN, and the compensation," concluded Riznaldi.

Previously, the government provided 5 economic stimulus packages to maintain purchasing power and stabilize the economy in June and July 2025. However, the implementation of a 50 percent electricity tariff discount for household customers below 1,300 VA did not end up being part of the stimulus.

Finance Minister Sri Mulyani explained the reason for canceling the stimulus, which is that budgeting for electricity tariff discounts is not possible to be carried out in June to July 2025.

She explained that the budget for electricity tariff discounts for June and July was transferred into the Wage Subsidy Assistance (BSU), which is part of the 5 stimuli provided by the government.

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