Subsidies for BBM (fuel), LPG, and electricity are cut in the 2020 APBN (State Budget) interim budget.

The Indonesian government and the Budget Board of the House of Representatives (DPR RI), in a working meeting to determine the provisional structure of the 2020 State Budget (APBN), agreed to reduce energy subsidies by Rp 12.7 trillion compared to the 2020 State Budget Draft (RAPBN). The provisional 2020 APBN recorded energy subsidies at Rp 125.3 trillion, while the 2020 RAPBN allocated Rp 137.5 trillion.

Specifically, fuel (BBM) and LPG subsidies were reduced by Rp 4.7 trillion to Rp 70.6 trillion compared to the 2020 RAPBN, which allocated Rp 75.3 trillion. Electricity subsidies in the provisional 2020 APBN amounted to Rp 54.8 trillion, a decrease of Rp 7.4 trillion compared to the 2020 RAPBN, which allocated Rp 62.2 trillion.

On September 4, 2019, the government announced the cancellation of electricity subsidies for 900 Volt Ampere (VA) customers. This policy will be implemented starting January 1, 2020. The reason for the cancellation is to ensure that subsidies are targeted effectively.

(Read Databoks: [Provisional 2020 APBN Structure, APBN Deficit Rp 307.2 Trillion](https://databoks.katadata.co.id/datapublish/2019/09/06/postur-sementara-apbn-2020-defisit-apbn-rp-3072-triliun))