Ahead of 2024 elections, House agrees to increase energy subsidy allocation

Jakarta – The working committee of the House Budget Unit has agreed to increase the volume allocation of energy subsidies for subsidised fuel and 3-kg LPG canisters in 2024. In a meeting with Finance Minister Sri Mulyani Indrawati in mid-June, House Budget Unit Chairman Said Abdullah said the additional energy subsidy volume allocation was agreed upon due to increased demand.

He said, the additional volume of energy subsidies also anticipates demand volatility arising in 2024 due to general elections. “It is estimated that the level of demand will be greater due to the strengthening of the national economy, and anticipating the vulnerability of social turmoil in the election year,” said Abdullah.

The committee agreed that the volume of subsidised fuel in 2024 would be 18.735 – 19.580 million kilolitres (KL), or higher than the volume of subsidised fuel in 2023 of 17.50 million kilolitres.

Furthermore, the volume allocation of subsidised LPG gas will also increase next year. Initially set at 8 million metric tonnes of LPG, the volume was increased to 8.20-8.30 kilolitres.

Not only fossil fuels, the allocation of green energy subsidies or electricity subsidies is also increasing. The electricity subsidy allocation is approved to reach IDR 75.70 trillion in 2024, with assumptions ranging from IDR 70.73-75.70 trillion. (Hartatik)

Banner photo: Rohani Budi Prihatin/shutterstock.com

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