Realized Subsidy Down 16.5% to Rp51.8 Trillion in April 2024

The Ministry of Finance (Kemenkeu) reported that government spending on subsidies reached Rp51.8 trillion (approximately US$3.5 billion) by April 2024. This realization is down 16.5% year-on-year (yoy).

"The decrease is significant, quite sharp. However, we will certainly monitor the developments in consumption, volume, exchange rates, and oil prices," said Finance Minister Sri Mulyani in a virtual press conference on Monday (May 27, 2024).

The state treasurer detailed that subsidy spending is divided into energy subsidies of Rp42.4 trillion and non-energy subsidies of Rp9.4 trillion.

This subsidy realization consists of fuel subsidies (BBM) amounting to 4.3 million kiloliters (kl), down 2.6% (yoy) from 4.4 million kl in the same period last year.

Next, 2 million metric tons (MT) of 3 kg LPG subsidies were realized, a slight increase of 0.08% (yoy) from 1.99 million MT in the same period last year.

Electricity subsidies were distributed to 40.3 million customers, up 3% (yoy) from 39.2 million customers last year.

Meanwhile, People's Business Credit (KUR) subsidies channeled by banks reached Rp90.5 trillion, soaring 68.7% (yoy). Sri Mulyani explained that the significant growth in KUR realization was driven by increased disbursement, as last year's disbursement was not optimal.

The number of KUR debtors reached 1.6 million by April 2024, a 65.7% (yoy) increase from 900,000 recipients the previous year.

"It's good that the State Budget operations provide benefits to a very wide range of the public, from fuel, electricity, to KUR," she said.