Don't Be Stung, Electricity Subsidies Have Reached Rp21 Trillion In Six Months

Illustration (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) confirmed that the use of state money for electricity subsidies has reached Rp. 21.3 trillion until the first semester of 2022. This figure represents 35.7 percent of the ceiling of Presidential Decree No. 98 of 2022.

"The realization of the electricity subsidy is influenced by the number of subscribers and consumption of subsidized electricity," the government's report to the DPR regarding the Implementation of the First Semester State Revenue and Expenditure Budget quoted on Monday, July 4.

It was stated that until May 2022, the volume of subsidized electricity consumption reached 25.6 TWh which reached 38.5 million customers.

"(Overall) the realization of energy subsidies until the first semester of 2022 reached Rp. 75.6 trillion or 36.2 percent of the ceiling of Presidential Decree No. 98 of 2022 which was allocated Rp. 208.9 trillion," said the minutes.

In addition to electricity, energy subsidies also include subsidies for fuel (diesel and kerosene) with a ceiling of Rp. 14.6 trillion, as well as subsidies for 3 Kg LPG with a ceiling allocation of Rp. 134.8 trillion.

To note, this energy subsidy does not include the Other Expenditure Management Program compensation for fuel and electricity, which until June 2022 has realized Rp104.8 trillion.