Realization Of Energy Subsidy Budget More Than The 2024 State Budget Target

JAKARTA - The Ministry of Finance (Kemenkeu) reported that until the end of 2024 the realization of subsidies and energy compensation for fuel oil (BBM), LPG, Electricity reached Rp386.9 trillion.

This figure is up 51.95 percent when compared to the target in the 2024 State Revenue and Expenditure Budget (APBN) of IDR 185.9 trillion.

Deputy Minister of Finance I Suahasil Nazara explained that the realization consisted of diesel reaching Rp89.7 trillion, with total beneficiaries of more than 4 million vehicles.

"The diesel price should be Rp. 11,950 per liter. However, what the public pays is only Rp. 6,800 per liter. The difference of Rp. 5,150 per liter is borne by the state budget," he said at the KiTa State Budget press conference, on Monday, January 6.

Furthermore, Pertalite's subsidy reached Rp56.1 trillion, which was absorbed by 157.4 million vehicles. Where the price should have been Rp11,700, while the community only paid Rp10,000 per liter. So that the pertalite APBN covers Rp1,700 per liter.

Then, the realization of kerosene reached Rp4.5 trillion which was absorbed by 1.8 million households. Where the price of kerosene should be Rp. 11,150 per liter of price and the public only pays Rp. 2,500. So that the difference covered by the state budget is Rp. 8,650.

Meanwhile, the realization of 3 kg LPG subsidies reached Rp80.2 trillion which was absorbed by 40.3 million customers and subsidies borne by the government for 3 kg LPG reached Rp30,000 per cylinder where the actual price of one 3 kg LPG cylinder was Rp42,750 per cylinder, but the price paid by the community was Rp12,750 thousand per tube.

Meanwhile, subsidized electricity reaches around 90.9 million subscribers with a total subsidy of IDR 156.4 trillion. Where, 900 VA household electricity subsidies should have been priced at IDR 1,800/KWH, after being covered by the APBN to IDR 600/KWH. Meanwhile, for electricity 900 VA non-subsidized prices should have been IDR 1,800/KWH, after being borne by the government it became IDR 1,400/KWH.

"This is paid by the state, because there is a difference in the price that should be paid by the community," he said.

Previously, Minister of Finance Sri Mulyani Indrawati had predicted that energy subsidy spending would increase in the 2024 State Revenue and Expenditure Budget (APBN).

This is due to several parameters of changes ranging from rising world oil prices, lifting oil to lowering the rupiah exchange rate against the United States (US) dollar.

"Energy subsidies in this case are expected to increase with several parameters of change, namely oil prices, as well as in terms of lifting and exchange rates," Sri Mulyani said at the Working Meeting of the DPR RI Budget Agency, Monday, July 8.

On the other hand, Sri Mulyani said that the government continues to refrain from increasing fuel and electricity prices when world oil prices rise and the rupiah exchange rate drops in order to maintain people's purchasing power so that the state budget must bear the difference in prices to PT Pertamina (Persero) and PT PLN (Persero).

"Until today, people are still enjoying the relatively stable subsidy price, despite changes in parameters. This causes the state budget to carry the burden," he said.