Wamenkeu: Subsidized Energy Needs of the Community Continue to Increase Every Year

Wamenkeu Suahasil Nazara (Photo: Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) noted that by the end of November 2025, the payment of energy subsidies and compensation to assigned SOEs had reached Rp345.1 trillion or equivalent to 72.6 percent of the total 2025 state budget ceiling.

Deputy Minister of Finance Suahasil Nazara explained that the realization of energy subsidies includes various commodities that the community consumes continue to increase from year to year, such as fuel oil (BBM), 3 kilogram LPG, subsidized electricity, and subsidized fertilizer.

He said that for subsidized fuel, the government targeted distribution of 19 million kiloliters in 2025 and by the end of November, the realization had reached around 15.6 million kiloliters or 80.4 percent of the target.

"If we look at 2023, 2024, 2025, there will be an increase in the volume of subsidized fuel goods," said Suahasil in the APBN Kita press conference, quoted on Friday, December 19.

Meanwhile, the allocation of 3 kilogram LPG in the 2025 State Budget is 8.17 million tons and by the end of November 2025, the distribution has reached 7.09 million tons, about 86.8 percent of the target.

The trend in consumption of 3 kilogram LPG also continues to increase, with growth of 4.5 percent in 2023, 2 percent in 2024, and 3.4 percent in 2025.

For subsidized electricity, the number of customers until 2025 was recorded at 42.6 million, surpassing the initial target of 42.1 million customers and this subsidy is given to households with 450 VA and 900 VA power.

In addition, the number of subsidized electricity customers continues to increase, with growth of 2.5 percent in 2023, 4.3 percent in 2024, and 2.6 percent in 2025.

As for subsidized fertilizer, the government allocated 8.9 million tons in 2025 and until the end of November, the realization reached 7.5 million tons or 84.3 percent of the target.

Suahasil noted that the use of subsidized fertilizer has increased significantly in the last two years.

"So we see that the use of subsidized fertilizer has increased quite rapidly in 2024 and 2025. In 2025 it grew by 11.2 percent," he said.

Suahasil emphasized that the increase in the realization of this subsidy reflects the high need of the community for subsidized energy and production inputs, and is a concern of the government to ensure the effectiveness and targeted spending of subsidies in the future.

He said that energy subsidy payments were routinely made by the Ministry of Finance every month, while for compensation in 2024 and the first quarter of 2025, the payments had been completed in full.