Has It Been Only Five Months That The Fuel Subsidy Has Been Rp43 Trillion, Will It Break Again?

Illustration (Photo: Doc. Antara)

The government through the Ministry of Finance (Kemenkeu) stated that the value of subsidies and fuel compensation (BBM) had reached Rp43.7 trillion as of May 2023.

Minister of Finance Sri Mulyani said that the amount was equivalent to the benefits of 5.62 million kilo liters of fuel.

"This is the central government's social expenditure through non-ministerial/institutions that are directly felt by the benefits of the community," he said online to reporters on Monday, June 26.

According to the Minister of Finance, in addition to subsidies and fuel compensation, other social expenditures include electricity subsidies of Rp. 35.6 trillion, LPG subsidies of Rp. 26.9 trillion, Pre-Employment Cards of Rp. 1.5 trillion, and housing subsidies of Rp. 301.9 billion.

Then there are social assistance and MSMEs (PKH, basic food cards, health insurance, agricultural assistance, etc.), educational assistance, as well as infrastructure

"The budget for the needs of the people which is very important and strategic will continue to be maintained," he said.

Meanwhile, the government in the 2023 State Budget has allocated a budget for all subsidies and compensation of IDR 339.6 trillion.

Just so you know, in 2022 the realization of subsidies will swell to IDR 551.2 trillion. In fact, the previous government only budgeted IDR 152.5 trillion in the 2022 State Budget.

This figure was later increased to IDR 502.4 trillion in mid-2022 to reduce commodity price fluctuations that soared threefold.