Jakarta – Recent soaring world oil prices has caused energy subsidies, including fuel, LPG, and electricity, to swell in February 2022. Minister of Finance Sri Mulyani Indrawati conveyed to the media on Monday (28/3) that realisation of energy subsidy reached IDR 21.7 trillion (USD 1.5 billion) or 11.3 percent of the state budget.
The increase in energy subsidies was not only due to increasing world oil prices, but also due to the increase in the volume of fuel, LPG and electricity consumption along with the increase in community activities. Furthermore, the Minister of Finance detailed energy subsidies this year consisting of regular energy subsidies amounting to IDR 11.48 trillion and underpayments of IDR 10.7 trillion the previous year.
It was noted that the volume of subsidised fuel rose to 1.39 million kilolitres from 1.18 million kilolitres in the same period in 2021. Meanwhile, the volume of subsidised 3-kilogram LPG canisters rose to 632.7 million kilograms from 603.2 million kilograms. Subsidised electricity subscribers rose to 38.2 million from 37.2 million in the same period last year. Likewise, subsidised electricity subscribers rose to 38.2 million as of February 2022 from 37.2 million in the same period last year.
“The government still has a debt of IDR 109 trillion to PT Pertamina (Persero) and PT PLN (Persero). This debt is a compensation fee that has not been paid by the government until the end of 2021,” Indrawati explained.
She said, compensation costs for Pertamina and PLN will increase because there will be no adjustment in electricity and fuel prices during 2021. Meanwhile, commodity prices continue to increase.
Indrawati detailed the government’s remaining obligations to Pertamina amounting to Rp 45.9 trillion in 2020. However, the government has only paid Rp 30 trillion in 2021, so there is still a balance of Rp 15.9 trillion. Then, the total government debt to PLN is IDR 17.9 trillion in 2020. The government has paid off all of the debt in 2021.
“In the BPKP (Financial and Development Supervisory Agency) audit, it is stated that compensation has increased, namely fuel costs will increase to IDR 68.5 trillion and electricity to IDR 24.6 trillion. If the results of the BPKP audit and the remaining government debt are added, the total will be IDR 109 trillion,” she said.
The Minister of Finance added that global commodity prices are currently experiencing a significant increase. This will certainly have an impact on increasing spending in the State Revenue and Expenditure Budget (APBN), especially energy subsidy spending.
However, she said, the government has not taken steps to increase the allocation of energy subsidy spending due to the increase in commodity prices. The decision will be taken directly in a cabinet meeting chaired by President Joko Widodo. (Hartatik)
