Sri Mulyani Explains The Reason For Giving IDR 25.1 Trillion For The 2026 Fuel Subsidy
Minister of Finance (Menkeu) Sri Mulyani Indrawati explained the reason for the government to provide a quota of IDR 25.1 trillion for fuel subsidies in 2026.
Based on Book II of the Financial Note and RAPBN 2026, the fuel subsidy budget was given of Rp. 25.1 trillion, down from the outlook in 2025 which amounted to Rp. 26.1 trillion.
The state treasurer explained that the reason behind the decline in energy subsidies was due to the projected movement of crude oil prices and the government's efforts to organize distribution to be more targeted.
The government has set the assumption that the price of Indonesian crude oil or Indonesia Crude Price (ICP) in the 2026 RAPBN is 70 US dollars per barrel. Whereas previously in 2025 the government coordinated the price of ICP of 82 US dollars per barrel.
"The ICP was indeed lower than this year, so the calculation must have decreased, we will also see the trend of the exchange rate, so we will see based on the assumptions contained in this financial note," he said, quoted on Saturday, August 16.
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According to him, the government is also working on improving the distribution of subsidized fuel so that it is more targeted.
Sri Mulyani said this was in accordance with President Prabowo Subianto's direction that the group of poor people wanted subsidies to really enjoy.
"In accordance with what was conveyed by the President, subsidies must be more targeted. So what was conveyed earlier, if subsidies are still occupied by very rich groups, it may be necessary to take steps for targeting," he explained.
For this reason, he claimed to have held talks with the Ministry of Energy and Mineral Resources (ESDM) as the technical ministry in order to improve data on recipients of fuel subsidies. Regarding data, the Ministry of Energy and Mineral Resources and the Ministry of Finance will cooperate with the Central Statistics Agency (BPS) based on National Socio-Economic Integrated Data (DTSEN).
"So the relevant ministries and BPS will use the data (DTSEN), we will use it as a benchmark or reference regarding how much subsidy volume is needed if the target is correct," he said.