Rupiah Weakens, Sri Mulyani: Will Be Affected To Electricity And Fuel Subsidies

Minister of Finance Sri Mulyani (Photo: Antara)

Minister of Finance Sri Mulyani Indrawati revealed that the weakening of the rupiah against the United States (US) dollar will have an impact on the State Revenue and Expenditure Budget (APBN) because the majority of state expenditures use foreign currencies.

According to Sri Mulyani, the weakening of the rupiah will mainly have an impact on the cost of energy subsidies borne in the APBN because the payments use US dollars and the materials come from imports.

"There will be an effect on shopping that is denominated using foreign currency such as electricity subsidies, BBM, which is partly imported, so later there will be the so-called seepage effect from the rupiah moving inward (APBN)," he said at a press conference. the latest economic fundamental conditions and the 2025 State Budget plan, Monday, June 24.

Sri Mulyani explained that if the volume or commodity price that had been set in the 2024 State Budget did not change, while the rupiah weakened and the US dollar continued to strengthen, there would be deviations or irregularities from regulations.

"The number of expenditures for fuel, electricity, LPG subsidies, if there is no change in policy, namely volume in accordance with what is in the APBN Law, exchange rates use assumptions but now deviation, oil prices according to assumptions but there is also deviation," he said.

Sri Mulyani conveyed that the amount of energy subsidy spending that swelled due to the weakening of the rupiah would later be adjusted to bills from PT Pertamina and PT PLN. The new bill will be paid after the total bill is reviewed and audited by the Financial and Development Supervisory Agency (BPKP).

"Every quarter we ask BPKP to audit and we pay according to the country's ability, like last year we paid until the third quarter because the fourth quarter was only audited after the budget year was over," he said.

Sri Mulyani also ensured that the amount of subsidized expenditure was still in accordance with the 2024 State Budget Law with a predetermined range of IDR 300 trillion.

"Later we will see how much of the volume has been determined by changing prices and exchange rates that occur. And this is what we convey as much as possible, we will pay according to the country's financial capacity," he said.