Jakarta – Energy subsidy allocation for this year has decreased compared to the previous year, according to Minister of Finance Sri Mulyani Indrawati on Tuesday. The government allocates IDR 339.6 trillion in the State Revenue and Expenditure Budget (state budget) for subsidies and compensation for fuel oil (BBM).
“Last year, we allocated Rp 551 trillion in subsidies and compensation. But this year it is Rp. 339.6 trillion,” said Sri Mulyani Indrawati at the 2023 National Coordination Meeting of Regional Heads and Forkopimda at the Sentul International Convention Center (SICC), Bogor.
She said, allocation of energy subsidies paid to Pertamina is aimed at curbing spikes and fluctuations in subsidised fuel and LPG prices. The government had raised subsidised fuel prices by 30 percent last September.
Furthermore, the percentage increase in prices is claimed to be much lower than the increase in energy prices in other countries. “The Russia-Ukraine war caused food and energy disruptions. The prices of crude oil, gas and coal have soared very high,” she added.
As a result of these conditions, said Indrawati, European countries, Britain and the United States experienced an extraordinary increase in energy prices, even up to three times. Inflation also soared high, so people’s purchasing power decreased and the economy weakened.
As for the disbursement of funds for Pertamina, she said, it had been carried out from 2009 to 2020. The funds were provided in the form of State Equity Participation with a total value of Rp. 49.89 trillion.
“Pertamina manages subsidised funds from the state budget of hundreds of trillions, so it must be healthier, stronger, more efficient, competitive and accountable,” said Indrawati. (Hartatik)
Banner photo: Minister of Finance Sri Mulyani Indrawati (Source: Ministry of Finance)