Government Cuts Subsidy Budget to Rp 206.96 Trillion in the 2022 State Budget

The Indonesian government has slashed the subsidy budget in the 2022 State Budget (RAPBN) to Rp 206.96 trillion. This figure is 16.73% lower than the 2021 outlook of Rp 248.56 trillion.

The allocation for energy subsidies in 2022 is Rp 134.03 trillion. This includes Rp 77.5 trillion for fuel subsidies (BBM), with Rp 11.3 trillion allocated for specific types of BBM, Rp 66.3 trillion for 3 kg LPG cylinders, and Rp 56.5 trillion for electricity subsidies.

Non-energy subsidies in 2022 amount to Rp 72.93 trillion. This comprises Rp 25.3 trillion for fertilizer subsidies, Rp 6 trillion for Public Service Obligation (PSO), Rp 29 trillion for subsidized program loans, and Rp 12.7 trillion for government-borne tax subsidies (DTP).

The PSO subsidy allocation in the 2022 RAPBN is distributed to PT Kereta Api Indonesia (Rp 3.5 trillion), PT Pelni (Rp 2.3 trillion), and LKBN Antara (Rp 0.2 trillion).

In the 2022 RAPBN, state expenditure is set at Rp 2,708.68 trillion, while state revenue is pegged at Rp 1,840.66 trillion. This means that next year's budget will have a deficit of Rp 868.19 trillion, equivalent to 4.85% of the national Gross Domestic Product (GDP).