Sri Mulyani Reveals Subsidy Expenditure Realization Drops 16.5 Percent

BBM (Photo: Antara)

JAKARTA - The Ministry of Finance recorded the realization of spending until April 2024 for subsidies of IDR 51.8 trillion. This figure is down 16.5 percent when compared to the same period last year of IDR 62 trillion.

Finance Minister Sri Mulyani Indrawati explained that the decline in subsidies was mainly due to the decrease in energy subsidies, especially from fuel oil (BBM).

Sri Mulyani explained that the realization consisted of energy subsidies which reached Rp42.4 trillion, and non-energy subsidies reached Rp9.4 trillion.

"This realization is down 16.5 percent, this is not small or quite sharp. But of course we will see developments, from consumption, volume, exchange rates and oil prices," he said at a press conference on our State Budget, Monday, May 27.

Sri Mulyani conveyed that the realization of this subsidy consisted of subsidies for fuel oil (BBM) which were distributed as much as 4.3 million kiloliters or decreased 2.6 percent from the same period last year which distributed 4.4 million kiloliters.

Meanwhile, the 3 kg LPG subsidy was realized as much as 2 million metric tons or grew 0.08 percent compared to the same period last year which was distributed 1.99 million metric tons.

Meanwhile, electricity subsidies were distributed to 40.3 million customers, an increase of 3 percent compared to the same period last year which was distributed to 39.2 million customers.

Furthermore, the people's business credit subsidy (KUR) distributed by banks has reached IDR 90.5 trillion, an increase of 68.7 percent compared to the same period last year.

Sri Mulyani explained that the realization of KUR which grew quite high was influenced by the push for KUR distribution, because last year the distribution of KUR was less than optimal. Then, the distribution of KUR debtors until April 2024 increased by 65.7 percent or reached 1.6 million people.

"So it's good that operations regarding the APBN provide very broad benefits, starting from the distribution of KUR, LPG, and electricity, as well as fuel," he concluded.