Jakarta – The government is preparing a new mechanism to accelerate the disbursement of energy compensation to PT PLN (Persero) and PT Pertamina (Persero). Starting in 2026, the government will make monthly energy compensation payments of 70 per cent, replacing the previous scheme of quarterly payments, according to the Ministry of Finance on Friday, October 24.
The government hopes that this policy will maintain the smooth cash flow of the two energy SOEs, especially in covering the difference in the selling price of subsidised energy, which remains an operational burden.
Finance Minister Purbaya Yudhi Sadewa said that this new mechanism will be in effect until September each year. After that, the remaining 30 per cent of compensation will be paid after the final audit process is completed. “Starting next year, we will pay 70 per cent every month until September. Then it will be audited, and the 30 per cent audit results will be paid in full,” he said.
According to Purbaya, accelerating compensation payments will reduce the need for PLN and Pertamina to take out short-term loans from banks. This is because, until now, compensation payments that were not made on time often forced state-owned energy companies to cover cash flow deficits with debt.
“With this scheme, their short-term cash needs are met. So they don’t need to borrow too much from banks,” he added.
When asked about the country’s fiscal capacity to meet these monthly payments, he assured that the government’s financial condition remains very adequate. “Our finances are sufficient. It’s just a matter of cash flow,” Purbaya asserted.
Previously, the government had also sent official notifications to Pertamina and PLN regarding the availability of energy compensation funds in the state treasury. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2025)
