Fuel subsidy proposed to increase in 2025 draft state budget to maintain energy stability

Jakarta—The 2025 Draft State Budget (RAPBN) has agreed to significantly increase fuel subsidies to maintain national energy stability.

In a working meeting with Minister of Energy and Mineral Resources Arifin Tasrif, Deputy Chairman of Commission VII of the House of Representatives, Eddy Soeparno, stated that Commission VII of the House of Representatives agreed with the Minister of Energy and Mineral Resources regarding the basic assumptions of the energy and mineral resources sector in the 2025 Draft State Budget.

The volume of subsidised fuel is set between 19.05 million kiloliters (kl) to 19.58 million kl, with a fixed subsidy for diesel fuel (Gas Oil 48) in the range of Rp1,000 to Rp3,000 per litre.

In addition to fuel, the volume of subsidised 3-kg LPG was also agreed at 8.2 million metric tons, and electricity subsidies ranged from Rp 84 trillion to Rp 88.36 trillion. This increase is expected to ease the burden on the community and support energy needs amid fluctuations in global energy prices.

“The increased fuel and electricity subsidies show the government’s commitment to supporting affordable energy access for the community,” Soeparno said in an official statement Wednesday, June 19.

The Indonesian crude oil price (ICP) was also agreed to be between USD 80 and USD 85 per barrel, which is slightly higher than the 2024 State Budget assumption of USD 82 per barrel.

This agreement shows the government’s anticipation of the changing dynamics of the global energy market.

“The setting of a higher ICP price assumption shows the government’s readiness in facing the volatility of the international oil market,” Soeparno added. (Hartatik)

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