Jakarta—The energy subsidies and compensation budget for 2024 will reach Rp386.9 trillion. Deputy Finance Minister Suahasil Nazara, in a press conference on the 2024 State Budget on Monday, January 6, emphasised the importance of these subsidies in ensuring energy affordability for the wider community.
“This budget is a form of state commitment to protect people’s purchasing power, especially in meeting their daily energy needs,” Suahasil said.
Most of the budget is allocated to subsidising fuel oil (BBM), 3-kilogram (kg) LPG, and kerosene. Suahasil explained that the diesel subsidy alone reached Rp89.7 trillion, supporting more than four million vehicles across Indonesia.
“For every litre of diesel purchased by the public, the government covers Rp5,150. This means that for every 20 litres, there is a subsidy worth Rp100,000 given through the state budget,” he explained.
For Pertalite fuel, the subsidy reached Rp56.1 trillion, with a government contribution of Rp1,700 per litre. “The current Pertalite price of Rp10,000 per litre is far below the market price of Rp11,700, thanks to this subsidy,” he added.
Suahasil also highlighted the Rp80.2 trillion 3-kg LPG subsidy budget. “The 3 kg LPG cylinder used by households and MSMEs is sold at Rp12,750, while the market price reaches Rp42,750. This is a big support provided by the government,” he said.
Although the kerosene subsidy is small in proportion, it remains significant for households that depend on this fuel. The government allocated IDR4.5 trillion to support 1.8 million households, covering about 78 per cent of the price of kerosene.
The electricity sector also received a large portion of energy subsidies this year, with a total allocation of IDR156.4 trillion. This subsidy ensures that people can enjoy electricity at affordable prices.
“Electricity with a subsidised 900 VA power is only charged at Rp600 per kWh, while the actual price is Rp1,800 per kWh. This is a tangible form of the government’s partiality to the small community,” Suahasil explained.
In addition, compensation is also provided for non-subsidized electricity, allowing the price of non-subsidized 900 VA electricity to be only Rp1,400 per kWh from the normal price of Rp1,800 per kWh. (Hartatik)
