Sri Mulyani Admits That The State Budget Is Sloppy With Energy Subsidies Throughout The Year

Minister of Finance Sri Mulyani (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani gave a statement regarding the use of the State Revenue and Expenditure Budget (APBN) in balancing energy subsidies.

It was stated that the energy subsidy spending sector this year was bigger than last year. In fact, said the Minister of Finance, the use of the budget has almost touched the budget ceiling that has been set in the 2021 State Budget Law.

"We see that our subsidies are due to the high increase in oil and gas prices, so there is an increase in the cost of subsidies," she said at a press conference in our State Budget in the middle of this week.

In detail, the Minister of Finance explained that until October 2021 the number of fuel subsidies rose to 13.13 million kiloliters from the previous 11.91 million kiloliters.

Likewise with the 3-kilogram LPG subsidy, which jumped from 5,887.63 million kilograms in 2020 to 6,176.94 million kilograms in 2021.

Then, the subsidy for electricity subscribers is 38.1 million this year from 36.83 million last year.

As a result, the realization of energy subsidies until November 2021 is worth Rp102.5 trillion or 92.7 percent of the budgeted ceiling. This rate also shot up 15.7 percent compared to the realization of energy subsidies in the same period the previous year, which amounted to Rp88.6 trillion.

Just so you know, the amount of this energy subsidy has not been added to the non-energy subsidy targeting the housing finance sector for the community. It was recorded that non-energy subsidies in November 2021 had reached Rp61.9 trillion or grew from November 2020 which was Rp61.4 trillion.

"(Through this subsidy) the people are protected, but the state budget must bear the burden," closed Sri Mulyani.