The 2018 State Budget (APBN) allocated Rp 46.87 trillion (a 5.34 percent or Rp 2.37 trillion increase) for fuel (BBM) and 3 kg LPG subsidies, up from the Rp 44.89 trillion outlook for 2017. This amount comprises Rp 9.31 trillion for BBM subsidies and Rp 37.56 trillion for 3 kg LPG subsidies.
This increase in the subsidy budget was driven by a rise in subsidized fuel volume by 120,000 liters to 16.23 million liters, and a 251 million kg increase in 3 kg LPG to 64.5 billion kg. For context, the volume of subsidized BBM decreased significantly in 2015 to 17.59 million liters from 46 million liters previously, following the government's removal of subsidies for Premium gasoline.
In the 2018 APBN, total government subsidies decreased by 7.5 percent to Rp 156.23 trillion compared to the Rp 168.88 trillion outlook for 2017. The largest decrease was in non-energy subsidies, which fell by 22 percent to Rp 61.7 trillion from the Rp 79.01 trillion outlook in 2017.
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