The 2025 Energy Resilience Budget Is Set At IDR 421.7 Trillion And This Is The Focus

Illustration of oil refineries (ANTARA)

JAKARTA - The government has prepared a budget of IDR 421.7 trillion for energy security programs in the draft state revenue and expenditure budget (RAPBN) 2025. The budget will be used as an effort to maintain oil and gas supply and subsidized fuel (BBM). "Energy security is also an important priority of the elected president (Prabowo Subianto). We allocate in this case IDR 421 trillion from the side to increase subsidies or affordability as well as maintain through various fiscal instruments so that oil and gas production increases," said Finance Minister Sri Mulyani, Sunday, August 18. The government will increase oil lifting by providing fiscal incentives. These efforts are carried out through a revision of Government Regulation Number 27 of 2017 concerning Amendments to Government Regulation Number 79 of 2010 concerning Recurred Operating Costs and Income Tax Treatment in the Upstream Oil and Gas Business Sector. At the same time, the government will also revise Government Regulation Number 53 of 2017 concerning Taxation on Upstream Oil and Gas Business Activities with Contracts for Gross Split Results. We always listen and coordinate with teams from the technical and coordinating ministerial Ministry to see how fiscal instruments can work and encourage various production of these energy resistance by increasing oil and gas lifting,'' Sri Mulyani said.

He said the government was consistently carrying out the development of new renewable energy infrastructure. In the midst of the government's energy transition policy, the energy transition mechanism, renewable energy, and carbon exchanges. This step can only be done through the use of fiscal instruments. "So we will also continue to use the instrument, fiscal incentives, subsidies and various other intervention expenditures. Downstreaming apart from the mining side is also from the palm oil side and this is also one of the government's mainstays," said Sri Mulyani.