JAKARTA – Energy subsidies realisation in January 2022 reached Rp 10 trillion, an increase of 347.2% year on year (yoy) in January 2021 at Rp 2.3 trillion. This was revealed by Minister of Finance Sri Mulyani told the press Tuesday (22/2).
The surge in energy subsidies was the result of rising world crude oil prices. She said the largest energy subsidies were given to payments for subsidies for oil fuel and 3-kilogram LPG cylinders, as well as payments for underpaid subsidies for these two commodities in 2020.
“This surge in subsidies cannot be separated from the significant increase in global oil prices and is a form of the government’s efforts to protect the public,” said Sri Mulyani said in an online press conference.
Furthermore, according to her, the increase in energy prices is an additional burden on the state budget. “The state budget is an extraordinary guard or means of protecting the community and of course this is a real burden on the state budget,” she added.
Meanwhile, Head of the Fiscal Policy Agency (BKF) Febrio N Kacaribu said the impact of increasing world oil prices on the state budget was still measurable. Currently, he continued, the government continues to maintain and even try to increase people’s purchasing power.
“We will continue to monitor the impact of world oil prices on the provision of subsidies. So far, the impact on the state budget can still be overcome and we are managing the state budget prudently,” said Febrio. (Hartatik)
