Sri Mulyani Reveals Realization Of Capai Subsidy Of IDR 77.8 Trillion Until May 2024

Minister of Finance Sri Mulyani (Photo: Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) noted that the realization of spending for subsidies reached IDR 77.8 trillion as of May 2024. This realization increased by 3.7 percent when compared to the same period in 2023 which reached IDR 75.1 trillion.

Minister of Finance Sri Mulyani Indrawari conveyed that the realization of subsidies of Rp77.8 trillion came from the realization of energy subsidies of Rp56.9 trillion and non-energy subsidies of Rp21 trillion.

According to Sri Mulyani, the realization in May 2024 has also increased when compared to the realization of subsidies in May 2022 of IDR 75.4 trillion and in May 2021 it reached IDR 56.6 trillion. And in 2020, amounting to IDR 48.9 trillion.

Sri Mulyani said that in three consecutive years the realization of subsidized spending for the May period was quite large because it was caused by the increase in oil prices.

"We see that three consecutive years of subsidization until May the value is quite large, soaring high compared to 2021 when oil prices reached high increases. That is a combination of oil prices, exchange rates and volume," said Sri Mulyani at the Press Conference of our State Budget, Thursday, June 27.

Sri Mulyani conveyed that the realization of the energy subsidy until May 2023 consisted of fuel oil (BBM) reaching 5.57 million kiloliters, or a decrease of 1 percent when compared to the same period last year of 5.63 million kilo liters.

Then, for 3 kg LPG subsidy expenditure, the realization reached 2.7 million metric tons or grew 1.9 percent from the same period last year of 2.6 million metric tons. Meanwhile, electricity subsidies reached 40.4 million subscribers, an increase of 3.1 percent from the same period last year of 39.2 million subscribers.

Then, this non-energy subsidy consists of the distribution of People's Business Credit (KUR) which is distributed by banks reaching Rp114.7 trillion, or growing 42.9 percent when compared to the same period last year of Rp80.3 trillion. Meanwhile, the number of KUR debtors rose 33.4 percent from 1.5 million people to 2 million people.

"APBN works directly to the community, both through fuel subsidies, LPG which is enjoyed by 40 million customers and KUR with subsidized interest," he said.