Minister Of Energy And Mineral Resources Arifin Tasrif: 2025 Electricity Subsidy Focused On Poor And Vulnerable Households

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif emphasized that the 2025 electricity subsidy policy is focused on being right on target and prioritizing poor and vulnerable households.

"The 2025 electricity subsidy policy, which is right on target, is given only to those who are entitled to households, and to poor and vulnerable households," said Arifin at the Commission VII Working Meeting of the DPR RI at the Jakarta Parliament Complex, quoted from Antara, Thursday, June 20.

Arifin also said that the 2025 electricity subsidy policy encourages a more efficient and fair energy transition by considering economic, social, fiscal and environmental aspects.

He said that the Ministry of Energy and Mineral Resources (ESDM) proposed an electricity subsidy budget of IDR 88.36 trillion for 2025.

"The electricity subsidy in the 2025 RAPBN is proposed at IDR 83.02 to IDR 88.36 trillion," he said.

He said that the proposed budget had referred to the assumption that the price of Indonesian Crude Price (ICP) was 75-85 US dollars per barrel and an exchange rate of Rp. 15,300 to Rp. 16,000 per US dollar.

"With the assumption that the ICP is 75-85 US dollars per barrel and the exchange rate is in the range of Rp. 15,300 to Rp. 16,000 per US dollar, inflation is 1.5 to 3.5 percent in accordance with the KEM-PPKF (Macro Economic Framework and Fiscal Policy Principles) 2025 dated May 6, 2024.

In addition, assuming there is no electricity tariff adjustment for the subsidy customer group.

Previously, the Ministry of Energy and Mineral Resources proposed electricity subsidies of IDR 83.02 trillion for IDR 88.36 trillion for the 2025 RAPBN, higher up to IDR 15.12 trillion from the 2024 State Budget which amounted to IDR 73.24 trillion.

"For the need for electricity subsidies in the APBN era for the 2025 fiscal year, it is IDR 83.02 trillion", said the Director General of Electricity, Jisman Hutajulu, at the House of Representatives Commission VII Hearing Meeting in Senayan, Jakarta, Monday (3/6).

Jisman said that the figure was obtained assuming an rupiah exchange rate of Rp. 15,300' Rp. 16,000 per US dollar, assuming the price of Indonesian crude oil or Indonesian Crude Price (ICP) was US$75 85 per barrel, and inflation was 1.5 3.5 percent.

"This is in accordance with the macroeconomic framework and the principles of fiscal policy in 2025 that we obtained on May 6, 2024," said Jisman.

He explained that the target subsidy customers were 41.08 million, with the largest subsidy recipients coming from households who used 450 VA power, which was 45.46 45.99 percent with an estimated budget of IDR 38.18 trillion IDR 40.16 trillion.

Furthermore, there are subsidy recipients in the form of households with a power of 900 VA with a subsidy budget of Rp15.7516.68 trillion; small business of Rp9.39 trillion10.18 trillion; small industry of Rp5.93 trillion6.51 trillion; government of Rp0.36 trillion' Rp0.39 trillion; social Rp12.16 trillion' Rp13.08 trillion; and others of Rp1.24 trillion' Rp1.34 trillion.