Sri Mulyani Reveals Subsidy And Compensation Budget Reaches IDR 525.6 Trillion In The 2025 RAPBN

Press Conference of the 2025 RAPBN (Maria Trisnawati / VOI)

Minister of Finance Sri Mulyani Indrawati conveyed in the draft state revenue and expenditure budget (RAPBN) for the 2025 budget budget and compensation of IDR 525.6 trillion.

Subsidy and compensation in 2025 reached IDR 525 trillion, in a press conference for the 2025 RAPBN, quoted on Sunday, August 18.

Sri Mulyani explained that the budget for energy subsidies reached Rp394.3 trillion, an increase of 17.8 percent when compared to the subsidy budget this year. Then non-energy subsidies are planned to reach Rp131.3 trillion, an increase of 35.5 percent from this year's allocation.

According to Sri Mulyani, this non-energy subsidy has increased due to the increase in the volume of subsidized fertilizers. Meanwhile, in the energy sector, subsidies for 3 kilograms of LPG (kg) continue, including diesel and kerosene.

"The 3 kg LPG subsidy budget, diesel, kerosene, electricity subsidies, is mainly distributed to poor households, and vulnerable and energy transition will be carried out using the energy security budget," he said.

According to Sri Mulyani, the subsidy budget and compensation are realized to stabilize prices, maintain purchasing power, and support MSMEs.

Therefore, Sri Mulyani said, the government plans to increase the number of subsidized fertilizers next year from 6 to 7 million tons to 9 million tons by 2025.

"The increase is quite high in non-energy subsidies, especially for food security because we allocate up to 9 million tons of subsidized fertilizer. This increase is from the previous 6 to 7 million tons. This needs to be maintained from the accuracy of the target," he said.

In addition, Sri Mulyani added that there are subsidies for public transportation, people's business credit subsidies (KUR) for MSMEs, farmers, and fishermen.

"We also provide this non-energy subsidy for low-income people, especially for the purchase of houses, this was yesterday one of the issues to accelerate 1 million houses for low-income people (MBR), and for next year there may be a new target set by the elected presidential government," he said.

Sri Mulyani added that there are interest difference subsidies for MBR housing, and government-borne tax incentives (DTP) to support the business sector.

"KUR will continue to provide subsidies for interest, both for MSME fishermen," he said.

"And we are also still using tax incentives borne by the government for selected sectors, yesterday housing, the automotive later is that the elected president can determine which sector will be the sector of attention," he added.