Jakarta, Klinik Farma – The government of President Joko Widodo or Jokowi, through the Ministry of Finance, has allocated 145.9 trillion rupees from the state budget for subsidies for electricity, liquefied petroleum gas and fuel.
This was announced by Minister of Finance Shri Mulyani at a press conference on the release of our state budget for August 2023 on Friday (November 8, 2023).
Sri Mulyani said that the implementation of non-ministerial institutional (non-KL) spending until July 2023 reached IDR 527.4 trillion or 42.3% of the ceiling. “The second largest post is non-ministerial spending, the content of which relates to spending on subsidies, fertilizer subsidy programs and pension payments,” said Sri Mulyani.
Based on this figure, the amount of the budget used to provide energy subsidies reached IDR 145.9 trillion. The provision of energy subsidies consists of subsidies for electricity, 3 kg of LPG and fuel. The total subsidy issued by the government for electricity needs until July 2023 is IDR 48.5 trillion.
“This means that the government will allocate 6.9 trillion rupees per month for 39.2 million electricity consumers,” he said.
Shri Mulyani continued to subsidize 3kg LPG, the government has already spent IDR 37.7 trillion. According to him, this figure means that the government allocates 6.9 trillion Indonesian rupiah per month in the form of subsidies for 3-kilogram liquefied gas to 4 million people in need. “Those who enjoy 3 kilograms of LPG receive very large subsidies,” he said.
In terms of energy costs, the latter are focused on fuel subsidies and offsets. Shri Mulyani said the government spent 59.7 trillion rupees on fuel. With this figure, that means the government is spending Rs 8.5 trillion per month.
Meanwhile, according to the estimates of the General Budget Office of the Ministry of Finance, this year the quota for subsidies for fuel, electricity and liquefied gas will again run out before the end of the year. This means that there is a possibility that the subsidy quota will be violated again, as it was in 2022.
Chief Budget Officer Isa Rahmatarvata said the potential risk of over-quota continued to be related to consumption patterns that were not optimally controlled, as they were last year. So, he turned to the relevant authorities for control of consumption.
“With regard to the risk of exceeding quotas for subsidies and compensation for fuel, LPG and electricity, we really continue to pay close attention to this, because there really is potential for this,” Isa said.
“And we continue to work with business entities, in particular Pertamina and PLN, to be able to control the amount of subsidized fuel and electricity for consumption,” he said.
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