Energy Subsidies and Compensation Reach Rp203.7 Trillion as of May 2026

Minister of Finance Purbaya Yudhi Sadewa (Photo: Antara)

JAKARTA - Minister of Finance Purbaya Yudhi Sadewa said that the realization of state spending for energy subsidies and compensation until May 2026 reached Rp. 203.7 trillion or increased sharply by 208.2 percent compared to the same period last year which was recorded at Rp. 66.1 trillion.

"The expenditure for subsidies and compensation is ensured to be able to maintain people's purchasing power. This is if it now reaches 208.2 percent growth, it reaches subsidies and compensation of Rp. 203.7 trillion," he said in a press conference for the APBN KiTa, quoted on Monday, June 8.

Of the total realization of Rp203.7 trillion, approximately Rp94.8 trillion was allocated for energy subsidies, while the other Rp108.9 trillion was compensation payments in 2026 which are now made monthly.

Purbaya explained that the change in the compensation payment mechanism was carried out so that Pertamina had sufficient cash flow to maintain the supply of subsidized fuel for the community.

"Last year (compensation payment) at the end of the year, now it has started 70 percent every month, later in September we will calculate everything we pay the 30 percent so that Pertamin has enough cash flow. This is also done at the direction of the President when we met at the Palace so the government continues to maintain the availability of goods at subsidized prices," he said.

Until May 2026, the realization of the distribution of subsidized fuel reached 6.3 million kiloliters or an increase of 8.6 percent compared to the same period last year of 5.8 million kiloliters.

Meanwhile, the realization of LPG 3 kg subsidies reached 2,858.3 million kilograms, an increase of 2.7 percent compared to last year which was 2,782.2 million kilograms.

For subsidized electricity, the number of recipients was recorded at 43 million customers or grew 2.1 percent compared to the previous period which was 42.1 million customers.

In the agricultural sector, the realization of fertilizer subsidies until May 2026 reached 3.7 million tons or increased 20.7 percent year-on-year compared to last year's 3.1 million tons.

The distribution of the People's Business Credit (KUR) subsidy has reached 1.93 million debtors, up slightly 0.52 percent compared to the previous year which was as many as 1.92 million debtors.

"Basically, the President wants to ensure that the community continues to receive support for those in need of subsidies and also ensures that there is no shortage of goods," he said.