What is the budget for non-energy subsidies this year?

In the 2022 State Budget (APBN), the Indonesian government allocated Rp 72.93 trillion for non-energy subsidies. This amount represents 35.24% of the total subsidy expenditure.

The details are as follows: fertilizer subsidies of Rp 25.3 trillion; Public Service Obligation (PSO) of Rp 6 trillion, including Rp 3.5 trillion for PT Kereta Api Indonesia (PT KAI), Rp 2.3 trillion for PT Pelayaran Nasional Indonesia (PT Pelni), and Rp 200 billion for LKBN Antara.

Furthermore, Rp 29 trillion was allocated this year for subsidized interest rates on program loans, and Rp 12.7 trillion for government-borne tax subsidies (DTP).

The budget for non-energy DTP subsidies experienced the largest decrease, reaching 60.8% this year compared to the 2021 outlook. This was followed by a 44.97% decrease in program interest subsidies, a 13.06% decrease in fertilizer subsidies, and a 5.41% decrease in PSO subsidies for PT KAI. Conversely, PSO subsidies for PT Pelni increased by 9.52%.

The government cut total subsidy spending by 16.73%, reducing it to Rp 206.96 trillion this year from the 2021 outlook of Rp 248.56 trillion. Similarly, non-energy subsidies this year were cut by 39.27% from the 2021 outlook of Rp 120.09 trillion. Meanwhile, energy subsidies increased by 4.3% to Rp 134.03 trillion this year from Rp 128.47 trillion previously.