Indonesia Allocates Rp186.9tn for Energy Subsidy Budget in 2024
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16 January 2024 11:44 WIB
TEMPO.CO, Jakarta - The Ministry of Energy and Mineral Resources (ESDM) is allocating Rp186.9 trillion for this year's energy subsidy budget. Minister Arifin Tasrif said the budget Rp113.3 trillion is allocated for subsidizing fuel oil and LPG, and Rp73.6 trillion goes for electricity subsidies.
"We are anticipating the price of crude oil raw materials, as well as demand which is quite increasing," Arifin said in a press conference at the Energy Ministry Building on Monday, January 15.
The minister added that there needs to be government policies to optimize the distribution of energy subsidies to be more efficient and on-target. That way, the actualized energy subsidies will not exceed the target set.
"We also hope that there will be changes in global conditions that can have a positive impact on reducing subsidies domestically," he said.
In 2023, he said, the government actualized Rp159.6 trillion from the energy subsidies budget, consisting of Rp96.9 trillion to subsidize fuel oil and LPG, and Rp64 trillion of electricity subsidies.
This year the Ministry of Energy and Mineral Resources will increase the realization of the One Price Fuel program distribution. Arifin said that as of 2023 the One Price Fuel program had only been implemented in 512 locations/areas, below the ministry's target to have it ready in 612 points between 2017 and 2024.
"This year we are targeting to install it in at least 100 more points," he said.
He said that One Price Fuel policy's goal is to allow everyone in every corner of Indonesia to enjoy the same price of fuel.
TEMPO.CO
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