Energy Subsidies Reach Rp210.7 Trillion in the 2023 State Budget

Economics & Macro

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Reza Pahlevi 16/08/2022 16:10 WIB

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This energy subsidy value increased from Rp208.9 trillion in the 2022 Revised State Budget.

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Energy Subsidies Reach Rp210.7 Trillion in the 2023 State Budget

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Annual Energy Subsidy Value (2010-2023)

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The 2023 State Budget allocates Rp210.7 trillion for energy subsidies. This includes subsidies for specific types of fuel (BBM), 3 kg LPG cylinders, and electricity.

This energy subsidy amount is an increase from Rp208.9 trillion in the 2022 Revised State Budget. The 2022 subsidy value itself increased from the initial State Budget allocation of Rp134 trillion.

The increase in energy subsidies is due to the rising Indonesian Crude Price (ICP). The ICP assumption increased from US$63 per barrel to US$100 per barrel. For 2023, the State Budget assumes an ICP of US$105 per barrel.

It is important to note that this energy subsidy figure does not include compensation for fuel and electricity. In 2022, compensation for fuel and electricity surged from Rp18.5 trillion to Rp293.5 trillion.

This drastic increase in compensation is not solely due to the rise in ICP resulting from the geopolitical crisis. The designation of Pertalite as a special assignment fuel (JBKP) also contributed to this year's increase in compensation.

Editor : Annissa Mutia

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Energy Subsidies Reach Rp210.7 Trillion in the 2023 State Budget

Energy Subsidies Reach Rp210.7 Trillion in the 2023 State Budget

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Energy Subsidies Reach Rp210.7 Trillion in the 2023 State Budget

Energy Subsidies Reach Rp210.7 Trillion in the 2023 State Budget

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