This is the level of fuel to electricity subsidy allocation for 2025

Jakarta –

The government has decided on the allocation of the 2025 energy subsidy budget.

The total amount of subsidized fuel in 2025 will reach 19.41 million kiloliters (KL). In detail, kerosene is 0.52 million KL and diesel oil 18.89 million KL. At the same time, for 3 kg LPG, the government provided a quantity of 8.2 million metric tons.

Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia said the subsidy allocation was down compared to the previous year’s target of 19.58 million KL. This reduction is due to plans to effectively distribute subsidized fuel in 2025 to make it more targeted.

“The hope is that more luxury cars will not use subsidized products,” Bahlil said in a written statement, Wednesday (28/8/2024).

In addition, the government has proposed to keep the diesel subsidy amount at IDR 1,000 per liter in 2025. This decision was made after considering the social and economic impact of an increase in fuel prices.

In addition, the government has also allocated IDR 90.22 trillion for electricity subsidies in 2025. This amount is an increase from the 2024 target of IDR 73.24 trillion. This amount includes the remaining 2023 underpayment of IDR 2.02 trillion.

“This increase is driven by the estimated increase in the number of electricity subsidy recipients from 40.89 million customers in 2024 to 42.08 million in 2025,” he explained.

Responding to this, the Deputy Chairman of Commission VII DPR RI Maman Abdurrahman expressed the importance of targeting electricity subsidies more precisely. He emphasized the need to improve data on subsidy recipients so that the rich would not have subsidies, so that the state budget could be used more efficiently.

“We need to focus on the people in East Indonesia and within Kalimantan who are in dire need of energy subsidies,” he said.

(are/are)