This Is The Amount Of Fuel, LPG And Electricity Subsidies Proposed By The Minister Of Energy And Mineral Resources For The 2024 RAPBN

JAKARTA - The Minister of Energy and Mineral Resources (ESDM) met with Commission VII DPR RI to explain the amount of subsidies for fuel, LPG 3 kg and electricity in the 2024 State Revenue and Expenditure Budget Draft (RAPBN).

It is known in this design that the Ministry of Energy and Mineral Resources proposed a subsidized fuel volume of 19.58 million kiloliters (KL) consisting of 0.58 million KL and 19 million KL diesel fuel and 3 kg LPG volume of 8.03 million MT, electricity subsidies of Rp73.24 trillion and cost recovery of 8.25 billion US dollars.

Arifin said that the direction of the fuel subsidy policy is to provide permanent subsidies for diesel oil and subsidies (price difference) for kerosene and continue the registration road for fuel users.

"Therefore, the government continues to provide permanent subsidies for diesel oil of Rp1,000 per liter," said Arifin in a Working Meeting with Commission VII DPR RI, quoted on Saturday, September 2.

The Ministry of Energy and Mineral Resources proposes a fixed subsidy for diesel of IDR 1,000 per liter, this needs to be done considering that the economic price of diesel reaches IDR 11,250 per liter while the retail selling price is IDR 6,800 per liter.

"Solar is still widely used for land transportation, sea transportation, trains, fisheries businesses, agricultural businesses, micro-enterprises, and public services, so efforts are needed to maintain retail diesel selling prices," said Arifin.

Meanwhile, for the provision of 3 kg LPG subsidies, the government will continue to provide this subsidy to continue efforts to transform 3 kg LPG subsidies into people-based and integrated with accurate beneficiary data, including data collection on technology-based 3 kg LPG users.

"The implementation of the 3 kg LPG Tube Subsidy transformation is carried out taking into account the economic conditions and people's purchasing power," said Arifin.

On the other hand, for electricity subsidies, the government and Commission VII agreed on an electricity subsidy of IDR 73.24 trillion for the Macro Assumption of the 2024 RAPBN.

"The government proposes the amount of electricity subsidies in the 2024 RAPBN of Rp. 73.24 trillion assuming an ICP of 80 US dollars per barrel and an exchange rate of Rp. 15,000 per US dollar," he said.

Arifin said that those who will receive subsidies are the group of people who have household customer rates with a power of 450 volt ampere (VA) and 900 VA of the pre-sesejahtera community who are included in the Integrated Social Welfare Data (DTKS).

"In addition, other customer groups do not get electricity subsidies," concluded Arifin.