Government's Proposed Energy Subsidy Revision to Rp 89.9 Trillion

27/07/2017 11:33 WIB

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Energy Subsidies in the 2017 State Budget

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Energy Subsidies in the 2017 State Budget

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The House of Representatives (DPR), represented by the Budget Board (Banggar), agreed on energy subsidies of Rp 89.9 trillion in the 2017 Revised State Budget (RAPBNP). This amount is Rp 13.3 trillion lower than the government's proposal of Rp 103.1 trillion, but higher than the 2017 State Budget (APBN) of Rp 77.31 trillion.

This agreement allocates Rp 44.49 trillion for fuel and LPG subsidies, lower than the government's proposed Rp 51.1 trillion. Electricity subsidies are set at Rp 45.4 trillion, down from the previous Rp 52 trillion.

The failure to implement a closed system for 3-kilogram LPG gas subsidies and the postponement of electricity tariff adjustments for 450 VA and 900 VA customers led to a swelling of the energy subsidy budget in the 2017 APBN.

"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."