Electricity Consumption of Industry and Business Sector as a Barometer of Growth

National electricity consumption has historically grown by an average of 6% per year. If consumption figures continue to increase, the target of economic growth above 5% will be realized.

Electricity Consumption of Industry and Business Sector as a Barometer of Growth

The national electricity consumption trend continues to increase by an average of 6% per year. This increase is a barometer of economic recovery, especially in the industrial and business sectors that drive economic growth.

Data from the Directorate General of Electricity of the Ministry of Energy and Mineral Resources shows that in the last five years total electricity consumption has consistently increased, from 243.58 TWh in 2020 to 306.22 TWh in 2024. This increase is in line with the growing number of customers reaching 92.88 million in 2024, up from around 79 million customers in 2020. 

PT PLN's report (6/9/2025) noted that during the first semester of 2025, it managed to book sales of 155.62 TWh, growing by 4.36% compared to the same period in the previous year. Until the end of the year, consumption is expected to continue to grow with an average power consumption growth rate of around 5%-6% per year. This growth indicates the higher level of electrification and economic activity across the country.

When viewed by sector, electricity consumption in the industrial and business sectors, which are productive sectors that drive the production of goods and services, grows at a higher rate of 7% per year, compared to consumption in the household sector, which averages 4% per year.

The consumption growth of the industry and business sector reached its highest level in 2022 (10.9%). This shows that this productive sector is recovering quickly after the Covid-19 pandemic. Until 2024, the number of customers in the industrial and business sector will reach 5.4 million, where the portion of business or commercial customers is dominant (95%).

The electricity consumption of the industrial and business sector in 2024 was 150.97 TWh. Meanwhile, the consumption of the household sector in the same year was 130.43 TWh.

This positive trend in the use of electricity to power production has continued into this year. Data shows that during the first semester of 2025, national electricity consumption reached 155.62 TWh, growing by 4.36% compared to the same period the previous year.

The household sector was the main contributor to electricity consumption growth in the first half of the year, with consumption reaching 67.14 TWh or growing 5.13% on an annual basis. Meanwhile, electricity consumption in the industrial sector grew 2.66% on an annual basis. This growth was driven by demand from medium-sized industrial customers, particularly in sectors such as food and beverage, textile and apparel, and rubber and plastic industries.

To maintain growth momentum in the productive sector, the government's role in providing economic stimulus incentives related to electricity for businesses and industries is crucial. One of these incentives is realized through a policy of keeping electricity tariffs affordable. This approach is to ensure that operational and production costs in the industrial and business sectors remain competitive amid inflationary pressures and global economic uncertainty. 

In addition, the government needs to ensure a reliable, competitive and sustainable energy supply to encourage investment, business expansion and optimize the production of goods. This will ultimately accelerate the growth rate of the national Gross Domestic Product (GDP).