The Ministry Of Finance Reveals The Realization Of The Subsidy And Compensation Budget As Of February 2025 Of IDR 10.7 Trillion

Photo: Aris Nurjani/VOI

JAKARTA - The Ministry of Finance (Kemenkeu) recorded that until February 2025 the realization of the subsidy budget and compensation reached IDR 10.7 trillion, down 25.1 percent when compared to the same period last year of IDR 14.3 trillion.

Deputy Minister of Finance Suahasil Nazara revealed that the realization of subsidies and compensation consisted of energy subsidies of Rp. 10.6 trillion and non-energy subsidies worth Rp. 53.6 billion.

However, Suahasil said that the volume of various goods that received this subsidy increased on average volume.

"For subsidies and compensation, the payment is Rp. 10.7 trillion. But if we look at the volume of various goods that get subsidies, the volume is increasing on average," he explained at the KiTa State Budget Press Conference, Thursday, March 13.

Suahasil said that this condition can be seen from the realization of the use of fuel to 1.48 million kiloliters (KL) which has been distributed as a form of subsidized goods in January and February.

Meanwhile, the realization of the use of fuel increased by 1.3 percent compared to the same period last year of 1.46 million K/L.

Meanwhile, the realization of 3 kg LPG of 689.1 million kg or a slight decrease of 0.7 percent compared to the same period in 2024 of 693.9 million kg.

Then 41.8 million subscribers enjoy subsidized electricity, or an increase of 4.3 percent when compared to the realization in the same period last year of 40.1 million subscribers.

Suahasil conveyed that the 50 percent Electricity Discount Program in January was enjoyed by 71.1 million subscribers and in February 64.8 million customers were enjoyed.

Meanwhile, the total budget needed for the 50 percent Electricity Discount Program is still in the estimation process but the temporary figure is projected to reach IDR 13.6 trillion.

In addition, Suahasil said that the distribution of fertilizers had been distributed by 1.3 million tons, an increase of 49.4 percent when compared to the realization in the same period last year of 0.87 million tons.

"This (upward fertilizer distribution) is because there is a policy change led by the President (Prabowo) and the Minister of Agriculture (Andi Amran) to reorganize the distribution of subsidized fertilizers so that in the first 2 months more fertilizers can be distributed to our farmer groups," he said.

Suahasil conveyed that the total subsidies and compensation budgeted in the 2025 State Budget amounted to Rp394.3 trillion, an increase of 1.87 percent when compared to the realization of subsidies and energy compensation in 2024 of Rp386.9 trillion.

Meanwhile, the total subsidies and compensation consist of energy subsidies of Rp203.4 trillion, an increase compared to the realization of energy subsidies in 2024 of Rp177.6 trillion, and compensation of Rp190.9 trillion, or decreased when compared to the realization of compensation in 2024 of Rp209.3 trillion.

Meanwhile, the energy subsidy consists of fuel subsidies of Rp. 26.7 trillion, an increase compared to last year's Rp. 165.4 trillion, a 3 Kg LPG subsidy of Rp. 87.0 trillion, or an increase compared to last year's Rp. 80.2 trillion, and electricity subsidies of Rp. 89.7 trillion, or a decrease compared to last year's Rp. 75.8 trillion.

Suahasil conveyed that for the quota, among others, subsidized electricity for 42.1 million customers for the 450 and 900 volt ampere customer groups, subsidized fuel for 19.4 million kiloliters (KL) and 3 kilograms LPG for 8.2 million metric tons of LPG.

"How is the subsidy given? The trick is to pay the price difference. From the economic price, the supposed price, with the price paid by the community," he explained.

"For example, for Pertalite, the price should be Rp. 11,700, but the retail selling price paid by the community is Rp. 10,000. This means that Rp. 1,700 per liter or about 15 percent is paid for by the state budget. Currently, there are 157.4 million vehicles that use it. For diesel covered by the state budget, it is Rp. 5,150 per liter and is now used by around 4 million vehicles," he added.