Bogor - The National Energy Council (DEN) is urging a reform of the\nnational energy subsidy scheme to ease the mounting fiscal burden. This\nis deemed necessary so that the State Revenue and Expenditure Budget\n(APBN) allocation can be redirected to support innovation and the\ndevelopment of a more productive energy sector.<\/p>\n
DEN member Satya Widya Yudha highlighted the large portion of\nsubsidies in the state budget, which is considered to hinder the scope\nfor domestic energy technology innovation. He stressed the need to\nchange the pattern of aid distribution from being commodity-based to\nsubsidies that directly target individuals to ensure social justice.<\/p>\n
\"If we look at the fiscal side, the fiscal burden of energy\nsubsidies, the 2022 APBN was burdened with energy subsidies and\ncompensation of Rp 551 trillion, which is equivalent to 2.8 percent of\nour GDP,\" Satya said at the DEN Energy Gathering event at the IPB Campus\nin Bogor.<\/p>\n
Based on DEN records from the Ministry of Finance regarding Energy\nSubsidies and Compensation from 2012 to 2026, the oil and gas trade\nbalance began to be negative in 2012 when oil and gas production\ndeclined and imports increased. The implementation of energy reform\npolicies in 2015 implied a significant decrease in the subsidy budget.\nHowever, in 2022, the allocation of subsidies and compensation increased\nsharply as a shock absorber due to rising commodity prices caused by the\nglobal crisis resulting from the war between Russia and Ukraine.<\/p>\n
It was recorded that energy subsidies and compensation reached Rp\n551.2 trillion in 2022, Rp 370.4 trillion in 2023, and Rp 386.9 trillion\nin 2024. Meanwhile, the provisional realisation of energy subsidies and\ncompensation for 2025 reached Rp 305.2 trillion, and in the 2026 APBN,\nthe allocation reaches Rp 351.1 trillion.<\/p>\n
The enormous value of subsidies, reaching hundreds of trillions, is\nconsidered an irony as it far exceeds the national research budget. The\nDEN assesses that dependence on commodity subsidies places Indonesia in\na difficult position to develop independently because energy costs are\nfully borne by the state coffers.<\/p>\n
\"This means we should be entering a mood of failing to innovate\nbecause the APBN pays for everything. The long-term solution requires\nsubsidy reform so that it is right on target, based on integrated\nnational socio-economic data,\" explained Satya.<\/p>\n
The government plans to rely on the use of big data technology and\nartificial intelligence (AI) to run this targeted subsidy programme.\nData integration through the National Socio-Economic Single Data (DTSEN)\nis seen as the main instrument in dissecting barriers to energy aid\ndistribution at the grassroots level.<\/p>\n
\"Energy security is roughly equivalent to fiscal security, and fiscal\nsecurity requires data security. We must start so that the targeted\nsubsidy problem will be resolved,\" he added.<\/p>\n
He hopes that with this restructuring, Indonesia can minimise the\nrisk of subsidy leakage, which has so far been enjoyed by affluent\ncommunity groups. Satya emphasised that strong data security is an\nabsolute prerequisite for maintaining national economic stability while\nensuring that state aid truly reaches the people who need it.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/national-energy-council-urges-energy-subsidy-reform-heres-why-1781160820", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }