JAKARTA - The government has realized subsidy and compensation spending of Rp. 233 trillion until the end of Semester I 2026 or equivalent to 52.1 percent of the ceiling allocated in the 2026 State Budget.
Based on the June 2026 APBN KiTA Report published by the Ministry of Finance, the realization consists of subsidies of IDR 116 trillion and compensation of IDR 116.9 trillion.
The Ministry of Finance explained that the realization of subsidies and compensation was influenced by a number of factors, including fluctuations in the Indonesian Crude Price (ICP), the movement of the rupiah exchange rate, and the increasing volume of fuel distribution (BBM), 3 kilogram LPG, and subsidized electricity.
"Oil price volatility due to global geopolitical dynamics can increase the realization of energy subsidies," the report said, quoted on Friday, July 24.
Until the end of June 2026, the distribution of subsidized fuel reached 7.98 million kiloliters (KL), an increase of 7.8 percent compared to the same period last year which was recorded at 7.41 million KL.
Meanwhile, the distribution of 3-kilogram LPG cylinders reached 3.56 million tons, or an increase of 2 percent compared to Semester I 2025 which was 3.49 million tons.
Furthermore, the number of subsidized electricity customers also continued to increase to 43.1 million customers, an increase of 2.1 percent year-on-year from 42.2 million customers in the same period last year.
In the non-energy sector, the distribution of fertilizer subsidies showed a significant increase, namely until Semester I 2026, the volume of subsidized fertilizer that had been distributed reached 4.5 million tons, jumping 21.4 percent compared to the realization of Semester I 2025 of 3.7 million tons.
"Non-energy subsidies are mainly influenced by the increase in fertilizer subsidy payments," he explained.
In addition, the number of borrowers of the People's Credit (KUR) who received interest subsidies reached 2.4 million borrowers, or increased by 3.6 percent compared to the same period last year.
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