Government Increases Quota for 3 Kg LPG Cylinder Subsidy: Here's the Data

Economics & Macro

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Viva Budy Kusnandar 31/03/2022 09:00 WIB

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The government has set a quota of 8 million metric tons for subsidized 3 kg LPG cylinders.

Realization and Quota of 3 Kg LPG Cylinder Subsidies (2012-2022)

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Government Increases Quota for 3 Kg LPG Cylinder Subsidy: Here's the Data

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Realization and Quota of 3 Kg LPG Cylinder Subsidies (2012-2022)

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The Indonesian government set the 2022 quota for subsidized 3 kg Liquefied Petroleum Gas (LPG) cylinders at 8 million metric tons, an increase from the previous year's quota of 7.5 million metric tons.

With this quota, the 2022 State Budget (APBN) allocated Rp66.3 trillion (approximately US$4.6 billion based on the exchange rate at the time of writing) for the LPG subsidy.

This LPG subsidy accounts for almost half of the total energy subsidy budget for 2022, which amounted to Rp134.03 trillion (approximately US$9.3 billion).

The Russia-Ukraine war has fueled rising prices for crude oil and other energy commodities, including natural gas. Therefore, this year's energy subsidies are expected to swell.

Compared to the end of 2021, the global price of natural gas has increased by 43.06% year-to-date (YTD) to US$5.336 per Mmbtu as of Tuesday, March 29.

Compared to March 29, 2021, the price of natural gas has more than doubled, increasing by 106.34% year-on-year (YOY).

As of February 2022, Indonesia's realized energy subsidies reached Rp21.7 trillion, comprising Rp10.17 trillion in outstanding payments from 2021 and Rp11.48 trillion in regular subsidies for this year.

Editor : Adi Ahdiat

"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."