The Indonesian state power utility or PLN (Perusahaan Listrik Negara) intends to impose big increases in some tariffs for electricity for the first time in over five years, due to the overall increase of energy prices around the world, ultimately squeezing budgets where there is subsidised electricity. 

Senior energy ministry official Rida Mulyana on Monday said tariffs would rise from July 1, including for households with 3,500 volt-ampere capacity and above.

The tariff hike would affect only middle- to upper-income households, as well as government buildings, and was expected to raise Indonesia’s 2022 inflation rate by 0.019 percentage points, Rida said.

The change would affect about 2.5% of PLN’s customers, the utility’s chief executive, Darmawan Prasodjo, said, adding that tariffs for businesses and industries would not be changed.