Airlangga: Government Will Evaluate Energy Subsidy In June

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. ANTARA)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would re-evaluate the energy subsidy budget after June 2024.

That way, the prices of fuel and LPG are guaranteed not to increase.

Even so, Airlangga did not explain in more detail whether the subsidy would be increased or not. This includes whether the price of fuel will increase or not.

"The energy evaluation will be carried out after June," he said at the Presidential Palace, Jakarta, Tuesday, April 16.

For your information, the government allocates an energy subsidy budget of IDR 186.9 trillion in 2024.

The budget includes Certain Types of Oil Fuel (JBT), 3 kilograms (kg) and electricity LPG.

The details are Rp113.3 trillion for fuel oil (BBM), and Liquidized Petroleum Gas (LPG), and Rp73.6 trillion for electricity subsidies.

Previously, it was reported that the Coordinating Minister for Economic Affairs Airlangga Hartarto said that the use of the social protection budget (perlinsos) issued by the government was mostly not for social assistance (bansos), but for fuel subsidies.

The statement was conveyed in the General Election Result Dispute (PHPU) session which was held at the Constitutional Court (MK), Friday, April 5.

"The largest social welfare budget is in the form of fuel, electricity, LPG, fertilizer, PSO, program loans with 58.3 percent share in 2024," said Airlangga.

Airlangga explained that the social welfare in 2024 mainly came from an increase in energy subsidies. In addition, it is sourced from the movement of the rupiah exchange rate.

The realization of the price of Indonesia Crude Price in 2023 is 78.43 dollars per barrel, while the assumption of Indonesia's ICP price in 2024 is 82 dollars per barrel.

"And the rupiah exchange rate has increased by an average of Rp. 15,230 to an average of Rp. 15,664 in 2024," he said.

"This price increase and exchange rate have implications for increasing energy subsidies in 2024 when compared to 2023," continued Airlangga.