2025 Energy Subsidy and Compensation Budget Reaches Rp394 Trillion

The Ministry of Finance (Kemenkeu) has allocated a budget of Rp394.3 trillion for energy subsidies and compensation in 2025. This figure represents a 1.91% increase year-on-year (yoy) from the 2024 State Budget realization of Rp386.9 trillion.

"In addition to electricity discounts, the government continues to implement subsidy programs for a number of subsidized goods," said Deputy Minister of Finance Suahasil Nazara in a press conference on the State Budget, Thursday (13/2/2025).

In 2025, the budget for fuel oil (BBM) subsidies will reach Rp26.7 trillion, a 23.61% increase year-on-year.

LPG 3 kg subsidies will amount to Rp87 trillion, an 8.47% year-on-year increase, and electricity subsidies will reach Rp89.7 trillion, growing by 18.33% year-on-year.

Meanwhile, compensation paid by the government to businesses to cover revenue shortfalls due to national pricing policies will decrease by 8.79% year-on-year to Rp190 trillion this year.

"This subsidy is provided through the State Budget by paying the price difference, from the economic price that should be to the price paid by the public," said Suahasil.

He detailed that subsidized electricity will be provided to 42.1 million customers, subsidized fuel oil quota will be 19.4 million kiloliters, and LPG 3 kg will amount to 8.2 million metric tons.