Indonesia's Energy Subsidy Realization Reaches Rp66.9 T in Semester I 2025

Economics & Macro

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Erlina Fury Santika 04/07/2025 16:43 WIB

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Finance Minister Sri Mulyani reported that the realization of subsidies and compensation amounted to Rp161.4 trillion in the first half of 2025. Of this amount, Rp66.9 trillion was allocated for energ

Realization of Subsidies and Compensation by Sector (Semester I 2025)

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Indonesia's Energy Subsidy Realization Reaches Rp66.9 T in Semester I 2025

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Realization of Subsidies and Compensation by Sector (Semester I 2025)

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Finance Minister Sri Mulyani reported that the total realization of subsidies and compensations reached Rp161.4 trillion in the first half of 2025.

This figure represents 32.4% of the target in the state budget (APBN).

Of this amount, compensation reached Rp68.6 trillion. Subsidies were divided into two compartments.

Energy subsidies totaled Rp66.9 trillion, while non-energy subsidies amounted to Rp25.9 trillion.

3-Kilogram LPG Subsidy

Currently, the Ministry of Finance is also ensuring that the subsidy for 3-kilogram (kg) LPG continues to be paid, even though its distribution this year is projected to exceed the established quota.

According to Katadata, the projected distribution of 3 kg LPG this year could reach 8.36 million metric tons (MT), exceeding the initial 2025 APBN target of 8.17 million MT.

"In short, if it's a subsidy, we will definitely pay it," said the Director General of Budget at the Ministry of Finance, Luky Alfirman, when met at the DPR Building on Thursday (3/7).

However, Luky could not confirm the amount of additional budget prepared. He emphasized that subsidy payments will follow the actual realization on the ground.

"It will be according to the actual realization. In short, if it's a subsidy, we will pay it," he said.

However, Luky revealed that to date, the Ministry of Finance has not received an official request for an increase in the quota for the 3 kg LPG subsidy from the Ministry of Energy and Mineral Resources (ESDM).

Despite the potential for a surge in LPG distribution, the government has actually cut the budget for the 3 kg LPG subsidy this year.

In the government's report on the Implementation of the APBN Semester I 2025, the budget for the 3 kg LPG subsidy is set at Rp 68.7 trillion. This figure is lower than the target in the 2025 APBN, which reached Rp 87 trillion.

Meanwhile, the Ministry of ESDM projects that the need for 3 kg LPG this year will swell to 8.36 million MT, exceeding the initial quota of 8.17 million MT.

Editor : Erlina Fury Santika

"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."