Sri Mulyani Prepares IDR 329 Trillion for the Energy Sector in 2024

RAPBN Press Conference and Financial Note for Fiscal Year 2024 (ANTARA)

JAKARTA - The government has prepared an energy subsidy budget of IDR 329.9 trillion for 2024. The budget will be used for 3 kg LPG, electricity, and certain types of fuel (diesel).

Minister of Finance Sri Mulyani detailed, in the RAPBN for the 2024 fiscal year, energy subsidies are planned at IDR 185.8 trillion consisting of subsidies for certain types of fuel (JBT) for diesel and 3 kg LPG cylinders of IDR 110.04 trillion and electricity subsidies of IDR 75.8 trillion. While the rest is compensation for the Pertalite Special Assignment Type of Fuel (JBKP).

"In 2023, the subdivision allocation budget is quite large, but the outlook until the end of the year will not be as big as what we budgeted for," said Sri Mulyani in a Press Conference on the RAPBN and Financial Notes for the 2024 Fiscal Year.

She further explained that the subsidy budget is intended for 3 kg LPG as much as 8.03 million MT, electricity subsidies for customers with a capacity of 450 VA-900 VA which are included in the DTKS, as well as a diesel subsidy of IDR 1,000 per liter.

"Next year, IDR 329.9 trillion is budgeted for LPG, electricity, and also IDR 1,000 per liter of diesel," continued Sri Mulyani.

Sri Mulyani detailed, for the LPG commodity, it will be distributed in the form of price difference subsidies, where the subsidy per kg is IDR 8,943 and the selling price of LPG is IDR 4,250 per kg.

Sri Mulyani reiterated that until the end of the year the energy subsidy outlook is not expected to be as big as budgeted considering that oil prices were set lower than the previous year while the rupiah was close to IDR 15,000.

"We hope that Pertamina will be more targeted and PLN will still be able to control it. We estimate that the total energy subsidies will be IDR 329.9 trillion," concluded Sri Mulyani.