Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government is still formulating a targeted energy subsidy scheme, including for the electricity sector, which will differentiate costs for customers.

"In the electricity sector, high-power customers are charged different rates from those with lower power consumption. This kind of mechanism can also be implemented in other energy sectors," Hartarto said at a press conference on the 2026 State Budget Draft and Financial Note at the Directorate General of Taxes in Jakarta on Friday.

The energy sector subsidies include 3-kilogram LPG and fuel oil. He said the government already has the National Socio-Economic Single Data (DTSEN), which will be used by the government to detect possible subsidy leaks to upper-class groups.

Hartarto acknowledged that currently subsidies are provided openly, in this case 3-kilogram LPG and subsidized fuel that can be purchased directly. "In the future, we will explore mechanisms and schemes that are currently under discussion within the government," he said.

Meanwhile, Finance Minister Sri Mulyani Indrawati stated that the budget for energy subsidies in the 2026 Draft State Budget (RAPBN) is set at Rp210.1 trillion (about US$12.9 billion), higher than the Rp203.41 trillion (about US$12.5 billion) allocated in the 2025 state budget.

The energy subsidy budget is included in the Rp508.2 trillion (about US$31.4 billion) allocation for social protection programs in the 2026 Draft State Budget. The 2026 social protection program budget will prioritize improving the accuracy of DTSEN utilization, integrating social assistance with empowerment programs, expanding access to capital and business mentoring, and ensuring adaptive and inclusive social protection.

In detail, the budget for social protection is planned to meet basic needs amounting to Rp315.5 trillion (US$19.4 billion).

The amount was distributed to the Family Hope Program (PKH) amounting to Rp28.7 trillion (US$1.77 billion) for 10 million beneficiary families, the Basic Food Card program amounting to Rp43.8 trillion (about US$2.70 billion) for 18.3 million beneficiaries, and the Employment Loss Insurance (JKP) contribution assistance of Rp1.2 trillion (about US$74.1 million) for 140.7 million participants.



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Translator: Putu Indah Savitri, Katriana
Editor: M Razi Rahman
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