Government Cuts LPG Subsidy Budget in 2024

Economics & Macro

Premium

Adi Ahdiat 22/08/2023 14:30 WIB

URL has been copied

Memuat...

In the 2024 State Budget (RAPBN), the government has allocated Rp84.3 trillion for LPG subsidy spending next year, a reduction of approximately Rp6.9 trillion compared to the 2023 outlook.

Indonesia LPG Subsidy Budget (2013-2024)

A Small Font
A Medium Font
A Bigger Font

You are accessing content Single Data Premium.
To continue, please subscribe or buy individually.

Professional

Enjoy premium access with a more affordable price.

Start from

~~Rp300.000~~ 150.000/month

Access more premium content and exclusive features for customers.

Start from

50.000/month

Hanya Rp833 per artikel

More details »

Buy Retail

Read the article immediately “Government Cuts LPG Subsidy Budget in 2024”.

Rp10.000

We accept the following payments:

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

Indonesia LPG Subsidy Budget (2013-2024)

Download

Source

A Small Font
A Medium Font
A Bigger Font

In the 2024 State Budget (RAPBN), the government allocates Rp84.3 trillion for the subsidy of 3-kilogram (kg) LPG cylinders next year.

This amount is reduced by approximately 7.6%, or Rp6.9 trillion, compared to the outlook for LPG subsidy spending in the 2023 fiscal year.

In the 2024 RAPBN, the government also stated that the LPG subsidy distribution mechanism will be changed from a commodity-based subsidy to a beneficiary-based subsidy.

"The subsidy for 3 kg LPG cylinders will be based on individuals and integrated with accurate beneficiary data, including data collection of 3 kg LPG users based on technology," quoted from *Book II of the State Budget and Financial Note for Fiscal Year 2024*.

"The implementation of the transformation of the 3 kg LPG subsidy is carried out by considering the economic conditions and purchasing power of the community," it continued.

Preparations for the change in the LPG subsidy mechanism have been underway since the beginning of this year.

The Ministry of Energy and Mineral Resources (ESDM) together with PT Pertamina (Persero) stated that they have been collecting data on 3 kg LPG users using a web-based system since March 1, 2023.

During the March-June 2023 period, the Ministry of ESDM also conducted socialization to thousands of LPG distributors in Java, Bali, Sumatra, Nusa Tenggara, Kalimantan, and Sulawesi.

"Later, starting January 1, 2024, only those who have been registered will be allowed to buy 3 kg LPG," said the ESDM Ministry team in a press release on its official website (June 9, 2023).

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."