Energy subsidy realisation in 2023 swells 6.6 percent, reaching IDR 269.6 trillion

Jakarta – The Ministry of Finance said that the realisation of 2023 energy subsidy spending for fuel, LPG, electricity and subsidised fertilisers swelled 6.6 per cent year-on-year (yoy) to Rp 269.6 trillion compared to the previous year’s Rp 252.8 trillion.

Finance Minister Sri Mulyani Indrawati, in an online press conference on the 2023 state budget, said that the swelling of energy subsidies was influenced by the realisation of increased non-energy subsidies, such as fertiliser subsidies and interest on small enterprise credit (Kredit Usaha Rakyat/KUR).

She said that non-energy subsidies reached Rp 105.3 trillion or grew 30.1 per cent yoy. On the other hand, the realisation of energy subsidies in 2023 reached Rp 164.3 trillion. The details are fuel subsidies and 3 kg LPG amounting to IDR 95.6 trillion, then electricity subsidies amounting to IDR 68.7 trillion.

Indrawati continued the subsidy distribution, reaching 16.5 million kilolitres (kl) of diesel fuel and kerosene, 7.7 million metric tons (MT) for 3-kg LPG canisters, and subsidies for 40 million subsidised electricity customers.

Going forward, Sri Mulyani hopes that PT Pertamina (Persero) will continue to tighten the distribution of subsidised fuel and 3-kg LPG canisters. Thus, the distribution of subsidies will be more targeted in 2024.

“For fertilisers, we also distribute them based on name and location so that we also know which farmers we want to help,” Sri Mulyani concluded. (Hartatik)

Banner photo: Finance Minister Sri Mulyani Indrawati. (Source: Ministry of Finance YouTube Channel)

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