Addin Anugrah Siwi, Jakarta – The Finance Ministry announced on Tuesday that the government had rolled out Rp 192.2 trillion (approximately $11.6 billion) in energy subsidies and compensation as of early October this year.

The government is disbursing subsidies to make sure energy prices remain affordable. Compensations are the funds that the government pays to businesses to compensate for the financial loss triggered by price-related policies. Deputy Finance Minister Suahasil Nazara said that about Rp 123 trillion was the monthly payment of energy subsidies. The remaining Rp 69.2 trillion went to compensation payments.

"The Rp 123 trillion subsidies that we have spent went to the companies, namely [state electricity provider] PLN and [oil company] Pertamina," Suahasil told reporters in Jakarta.

Data showed that these subsidies had benefited 42.4 million consumers. However, the government had yet to reach the halfway mark of the budget that it had allocated this year. Indonesia has set aside Rp 394.3 trillion for energy subsidies and compensation for this year alone, meaning that it only had three months remaining to spend them all.

According to Suahasil, the government had already made all the compensation payments for the 2024 energy use in June. The government has also agreed on the value of the compensation for the first and second quarters of 2025. The payments are expected to take place later this week.

"We hope that the energy subsidies and compensation can help maintain prices," Suahasil said.

Source: https://jakartaglobe.id/business/govt-rolls-out-116-billion-energy-subsidies-so-far-this-yea