The Jokowi-JK Administration Reallocates Rp 211 Trillion in Fuel Subsidies

During the administration of President Joko Widodo and Vice President Jusuf Kalla, Rp 211.3 trillion in fuel subsidy funds were reallocated to more productive budgetary items. This funding prioritized central government spending (Rp 113.9 trillion) and regional spending, particularly in underdeveloped areas (Rp 34.7 billion). The remaining Rp 62.7 trillion was allocated to fiscal sustainability, non-fuel subsidies, debt servicing, electricity subsidies, and other expenditures.

Early in his presidency, President Jokowi implemented an unpopular policy of raising fuel prices to reduce energy subsidies, deemed inefficient and burdensome to the national budget.

To maintain the momentum of achieved growth, Jokowi continued to enhance development focusing on three pillars: shifting the economy from consumption-based to production-based; targeted poverty alleviation; and promoting equitable development outside Java.