JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) revealed that the energy subsidy budget has the potential to reach IDR 400 trillion in 2026.
Director General of Mineral and Coal (Minerba) as well as Plt. Director General of Oil and Gas at the Ministry of Energy and Mineral Resources, Tri Winarno revealed, this could happen if there was no efficiency in energy use.
Tri said subsidized energy consumption is still relatively high at this time, if there is no effort to control it, the energy subsidy budget will increase.
"Regarding our macroeconomics, where subsidies are still relatively high and it is estimated that by 2025 our subsidies can reach Rp 400 trillion," he said, quoted on Saturday, August 2.
Tri then made a comparison of the energy subsidy budget in 2025 which was set at IDR 203.4 trillion. This amount includes electricity subsidies, fuel oil (BBM), and LPG. This budget, he said, has the potential to be better utilized in supporting state development.
"Rp400 trillion is a number that if we use it for other things that are more useful, maybe it can be used for a better future," Tri continued.
Especially at this time, he said, there are still many subsidized energy users who are not on target. For example, in LPG which is still widely used by the upper middle class. In fact, 3 kg LPG is only specifically for the poor. The same thing also happened to Pertalite-type subsidized fuels that are still widely consumed by the wealthy community.
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"For example, if we can be efficient, we can reduce it, for example, 3 kg LPG, which is a lot of actually not entitled but he uses it, there are also many Pertalite that are not right on target," said Tri.
Tri said that currently the government is still conducting studies so that the energy subsidies distributed are more targeted.
"Well, but the mechanism for how to be right on target, this is what we are still thinking, especially the LPG," said Tri.
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