The amount of subsidies and compensation is estimated to be exhausted and even exceeded, reaching over Rp698 trillion by the end of the year. This will be an additional expenditure for the 2023 State Budget Plan (RAPBN)
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati cautioned that subsidies and compensation for fuel (BBM) could reach more than Rp698 trillion by the end of 2022.

This figure exceeded the quota of Rp502.4 trillion set in the 2022 State Budget (APBN). The excessively large subsidy was caused by the upward trend in the world oil prices, weakening of the rupiah exchange rate, and the large consumption of pertalite and diesel.

"The amount of subsidies and compensation is estimated to be exhausted and even exceeded, reaching over Rp698 trillion by the end of the year. This will be an additional expenditure for the 2023 State Budget Plan (RAPBN)," she stated at the Plenary Meeting of the House of Representatives of the Republic of Indonesia, here on Tuesday.


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The fuel subsidy and compensation quota of Rp502.4 trillion has increased three folds, from the initial 2022 quota, as the economic price of fuel at the price set by the government is getting bigger.

Sri Mulyani said the government will continue to strive to improve the accuracy of targeting energy subsidies, so that it can be enjoyed by the poor and vulnerable, who really need the assistance.

The minister noted that poor and underprivileged households currently only enjoy five percent of the diesel subsidy and 20 percent of the pertalite subsidy, which will further increase the gap between communities.

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"Efforts to improve the targeting accuracy of energy subsidies will be carried out carefully, gradually, and taking into account the condition of the national economic recovery and its impact on the entire community," she stated.

These efforts are made simultaneously through a calibration process to protect the poor and vulnerable, maintain the process of economic recovery, and take steps to consolidate the health of the state budget.


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Translator: Katriana
Editor: Fardah Assegaf
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