2018 Energy Subsidies Slashed by Rp 8.8 Trillion from Government Proposal

26/10/2017 16:37 WIB

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2018 State Budget (APBN) and Draft State Budget (RAPBN) Energy Subsidy Allocation

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2018 Energy Subsidies Slashed by Rp 8.8 Trillion from Government Proposal

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2018 State Budget (APBN) and Draft State Budget (RAPBN) Energy Subsidy Allocation

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The House of Representatives (DPR) and the government have finally agreed on an energy subsidy budget of Rp 94.53 trillion for 2018. This figure is Rp 8.8 trillion (8.6 percent) lower than the government's proposal in the 2018 State Budget (RAPBN). However, compared to the 2017 Revised State Budget (APBNP), the energy subsidy for next year will actually increase by 5.19 percent.

The subsidy for fuel (BBM) and 3 Kg LPG in the 2018 State Budget has been cut by Rp 4.27 trillion (8.34 percent) to Rp 46.87 trillion from the initial government proposal. Similarly, electricity subsidies have been reduced by Rp 4.58 trillion (8.76 percent) from the 2018 RAPBN.

The target for energy subsidies in 2018 is to improve distribution by improving the accuracy of fuel subsidies and implementing a closed subsidy system for LPG. In addition, the government will also improve the accuracy of electricity subsidy recipients for underprivileged customers using 450 VA and 900 VA power.

"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."