2023 Non-Energy Subsidy Budget Increased to Rp86.5 Trillion

In the 2023 State Budget (RAPBN), the government has allocated Rp86.5 trillion for non-energy subsidies.

This non-energy subsidy allocation is 14.2% higher than the 2022 outlook of Rp75.7 trillion.

The Ministry of Finance (Kemenkeu) notes that this is due to a significant increase in the budget for program interest rate subsidies, particularly to support the KUR program in 2023.

The budget for program interest rate subsidies in the 2023 RAPBN is planned at Rp45.6 trillion, 43.9% higher than the 2022 outlook of Rp31.7 trillion. The largest portion of this budget, Rp40.9 trillion, is allocated to KUR interest rate subsidies.

The government has also allocated a budget of Rp25.3 trillion for fertilizer subsidies, which remains the same as this year's outlook.

Furthermore, the Public Service Obligation/PSO subsidy in the 2023 RAPBN is planned at Rp7.7 trillion to improve and enhance public services in transportation and public information provision. This amount is higher than the 2022 outlook of Rp6 trillion.

Meanwhile, the government-borne tax subsidy (DTP) is planned at Rp7.9 trillion. This figure is lower than the 2022 outlook of Rp12.7 trillion.

(Also Read: Government Disbursed Rp38 Trillion in Subsidies in Q1 2022)