Electricity Subsidies Set for 2025 Increase to Rp90.22tn, Says Bahlil

TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has confirmed that the electricity subsidy allocated in the proposed 2025 budget has been approved at Rp90.22 trillion. This marks a significant increase from the Rp73.24 trillion target set for 2024.

Bahlil explained that the electricity subsidy value includes a carryover of Rp2.02 trillion from underpayments in 2023. The budget increase for this subsidy is attributed to an anticipated rise in the number of eligible recipients from 40.89 million customers in 2024 to 42.08 million customers in 2025.

“So the increase in subsidized fuel oil customers is approximately 1 million. This increase will impact the overall fuel consumption,” said Bahlil on Tuesday, August 27, as reported by Antara.

Previously, Bahlil announced that the 2025 Draft State Budget (RAPBN) proposes decreasing subsidized fuel oil volume to 19.41 million kiloliters. “This is a reduction from the 2024 target of 19.58 million kiloliters,” he said.

The decrease in the volume of subsidized fuel oil was driven by a plan to streamline the distribution of subsidized fuel next year, making it more targeted.

Regarding diesel subsidies, Bahlil stated that it has been agreed to maintain the subsidy at Rp1,000 per liter, the same as the previous year. Meanwhile, the volume of subsidized LPG for the 2025 budget year was agreed to increase to 8.17 million metric tons, up from the 2024 target of 8.07 million metric tons.

The ESDM Ministry has proposed an electricity subsidy of between 83.02 trillion and 88.36 trillion rupiah for the 2025 Draft State Budget. This figure is Rp15.12 trillion higher than the 2024 State Budget of Rp73.24 trillion.

RR. ARIYANI YAKTI WIDYASTUTI

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