Reforminer Institute Warns of Increased Electricity Rates in Indonesia's Energy Transition Program

Firda Dwi Muliawati, CNBC Indonesia

Tuesday, 03/10/2023 20:00 WIB

Jakarta, CNBC Indonesia – The Reforminer Institute is warning against an increase in electricity rates amidst the energy transition program being carried out in Indonesia. This is because the price of electricity from new renewable energy (EBT) is higher than the price of electricity from coal power plants

Executive Director of the Reforminer Institute, Komaidi Notonegoro, revealed that when carrying out the energy transition there will definitely be cost adjustments which are considered more expensive than previously existing ones.

“This means that later the costs will be adjusted, usually they will be more expensive. That is something that is common or normal because the business scale is just entering,” explained Komaidi to CNBC Indonesia in the Energy Corner program, Tuesday (3/10/2023).

He said that in the short-medium term, it is claimed that the energy transition program will burden the finances of companies and the government.

With this new burden, it will be borne either by the APBN or the Indonesian State Revenue and Expenditure Budget, by business actors or by consumers themselves.

“So that will then be shifted to what I mentioned earlier, whether to the APBN as a subsidy, charged to consumers or charged to business actors,” he explained.

Ideally, according to Komaidi, this new burden could be shared equally between all parties, including the government, business actors and consumers.

“But this is for the common good in a macroeconomic context. Gradually, it will actually become a new balance and everything will lead to better things in terms of the social and economic environment,” he concluded.

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