The government has prepared an energy subsidy budget of Rp272.95\ntrillion in the 2027 Draft State Budget (RAPBN). This allocation\nrepresents an increase of approximately 20.1% compared with the 2026\nenergy subsidy outlook of Rp227.26 trillion.<\/p>\n
\u201cNext year\u2019s energy subsidy will reach Rp272.95 trillion,\u201d said\nFinance Minister Purbaya during a press conference on the Financial Note\nand the 2027 RAPBN on Tuesday (18\/8).<\/p>\n
Based on the Financial Note and the 2027 RAPBN documents, the\ngovernment has designed a total subsidy expenditure budget of Rp387.88\ntrillion for the 2027 fiscal year. This ceiling is divided into energy\nsubsidies amounting to Rp272.94 trillion and non-energy subsidies of\nRp114.99 trillion.<\/p>\n
These energy subsidies cover subsidies for certain types of fuel\n(JBT), 3 kilogram LPG canisters, and electricity. The government notes\nthat energy subsidy realisation during the 2022\u20132025 period has\nfluctuated with an upward trend, from Rp171.86 trillion in 2022 to\nRp185.17 trillion in 2025.<\/p>\n
For JBT and 3 kg LPG subsidies, the government has allocated Rp142.84\ntrillion in the 2027 RAPBN. This budget is up 22.2% compared with the\n2026 outlook of Rp116.85 trillion.<\/p>\n
The JBT and 3 kg LPG subsidy policy in 2027 is directed towards\ncontinuing the fixed subsidy for diesel fuel of Rp1,000 per litre and\nthe price-difference subsidy for kerosene. In addition, the government\nwill continue transforming the 3 kg LPG subsidy from a commodity-based\napproach to a beneficiary-based approach.<\/p>\n
Distribution will be integrated with accurate beneficiary data\nthrough technology-based data collection and the National Socio-Economic\nSingle Data (DTSEN). The assumed volumes set include:<\/p>\n
Meanwhile, the electricity subsidy budget in the 2027 RAPBN is\nplanned at Rp130.11 trillion, up 17.8% compared with the 2026 outlook of\nRp110.41 trillion. This increase is driven by higher basic electricity\nsupply costs (BPP) and the volume of subsidised electricity.<\/p>\n
The increase in BPP is influenced by fluctuations in the rupiah\nexchange rate against the US dollar, rising crude oil prices due to\nglobal geopolitical conflicts, and increased production from gas-fired\npower plants.<\/p>\n
The government has confirmed that electricity subsidies will be\ndirected towards eligible customer groups, such as poor and vulnerable\nhouseholds based on DTSEN, small businesses and industries, and the\nsocial sector. This policy will also be accompanied by the\nimplementation of tariff adjustments for non-subsidised customers to\nmaintain targeting accuracy and adapt to the economic conditions of the\npublic.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/energy-subsidy-in-2027-state-budget-draft-rises-20-1-to-rp272-95-trillion-1787035952", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }