LPG Distribution Chaos: Here's its 2025 Subsidy Budget

Economics & Macro

Lite

Viva Budy Kusnandar 05/02/2025 17:12 WIB

URL has been copied

Memuat...

In the 2025 State Budget, the government has allocated Rp87.6 trillion for 3 kg LPG subsidies, a slight increase compared to the previous year.

A Font Kecil
A Font Sedang
A Font Besar

Access single data

LPG Distribution Chaos: Here's its 2025 Subsidy Budget

Want to get more access to Data Stories with a more affordable price? Subscribe.

By subscribing, you join us in presenting quality data.

Get:

Premium Data Stories access
Comfortable reading without ads
Download data in XLS, PDF, and image format
Access to data source information

Basic

~~Rp100.000~~

Rp50.000/month

Professional

~~Rp100.000~~

Rp150.000/month

Institutional For organizations

We accept the following payments:

Some payment methods are still in the process of being activated.

LPG 3 Kg Subsidy Budget (2018-2025)*

Download

Source

A Small Font
A Medium Font
A Bigger Font

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, restricted the distribution of subsidized 3-kilogram (kg) LPG starting February 1, 2025. Previously, it could be sold by informal vendors or retailers; the new regulation limited sales to official agents and distributors.

This policy caused chaos. Long queues formed at LPG distribution points, and people in various regions found it difficult to buy this essential commodity.

A few days later, on February 4, 2025, President Prabowo Subianto ordered that 3 kg LPG could again be sold by retailers.

The 2025 State Budget (APBN) allocated Rp87 trillion for the 3 kg LPG subsidy, a slight increase from the previous year.

This allocation constitutes approximately 43% of the total energy subsidy budget for 2025, which reached Rp203.4 trillion.

The 3 kg LPG subsidy allocation also represents 28% of the total government subsidy budget for 2025, valued at Rp307.9 trillion.

Given the substantial budget, the government plans to change the distribution mechanism for the 3 kg LPG subsidy to ensure its targeted delivery.

"The challenges faced in implementing the LPG subsidy transformation require regulatory adjustments, particularly Presidential Regulation Number 104 of 2017 concerning LPG Subsidies, to support the change in the subsidy mechanism from a commodity-based to a person-based system," as quoted from *Book II of the 2025 APBN Financial Note*.

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."