Energy Subsidy Spending Fast, April Achievement Grows 39 Percent To Rp56 Trillion

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) reports that the realization of energy subsidy spending until the close of April 2022 is Rp. 56.63 trillion.

Minister of Finance (Menkeu) Sri Mulyani said this value grew by around 39 percent compared to the realization in April 2021 (year on year / yoy).

"The value of this subsidy expenditure is equivalent to 34.59 percent of the total energy subsidy ceiling provided for the whole of 2022," he said when holding a press conference on the State Budget, quoted on Tuesday, May 24.

In detail, the Minister of Finance explained that subsidies for fuel oil (BBM) and subsidies for 3 kg LPG cylinders had reached Rp. 34.77 trillion or 44.84 percent of the ceiling. He said the figure had increased by 25.48 percent yoy.

"Meanwhile, the realization of electricity subsidies reached Rp. 11.59 trillion or 20.51 percent of the ceiling," he said.

According to VOI records, the government last week obtained permission from the DPR to increase the amount of the energy subsidy ceiling and also the energy compensation budget.

Previously in the 2022 State Budget Law, the value of energy subsidies and compensation was set at IDR 152.5 trillion. This figure was later increased to Rp443.6 trillion.

The government's ability to increase the subsidy budget cannot be separated from the outlook for state revenues this year which is estimated to exceed IDR 420 trillion from the target and 2021 revenues that exceed 100 percent of the ceiling.