Bahlil Proposes Electricity Subsidy Increase to Rp117.84 Trillion for 2027
Energy and Mineral Resources Minister Bahlil Lahadalia has proposed an electricity subsidy of Rp117.84 trillion in the 2027 State Budget Draft (RAPBN), an increase from the Rp100.83 trillion set in the 2026 State Budget.
He made the announcement during a working meeting with Commission XII of the House of Representatives (DPR RI) at the parliament complex in Senayan, Jakarta.
“We also report to the leadership and all members of Commission XII that the proposed electricity subsidy in the 2027 RAPBN is Rp117.84 trillion,” Bahlil said on Monday, 31 August 2026.
The proposal is based on the macroeconomic assumption of an Indonesian Crude Price (ICP) of US$75 per barrel, up from US$70 per barrel in 2026.
In addition, the electricity subsidy proposal is also based on the assumption of a rupiah exchange rate of Rp17,500 per US dollar, up from the previous Rp16,500 per US dollar, as well as inflation of 2.5 percent.
“So, if the price rises, with the assumption rising to US$80 per barrel ICP, then there is a possibility of additional subsidy. Including the exchange rate. Well, let us just pray that the exchange rate does not experience too much correction,” Bahlil said.
Bahlil explained that the realised electricity subsidy paid up to June 2026 amounted to Rp46.36 trillion. Meanwhile, the July bill of Rp8.12 trillion and a first-quarter 2026 correction of Rp1.21 trillion are in the verification process at the Directorate General of Budget of the Ministry of Finance.
In addition to the electricity subsidy increase, Bahlil also proposed an increase in the volume of subsidised diesel from 18.64 million kilolitres in the 2026 State Budget to 19 million kilolitres in the 2027 RAPBN. He also proposed an increase in the volume of subsidised kerosene from 0.53 million kilolitres in 2026 to 0.561 million kilolitres in 2027.
“As we all know, not everyone in Indonesia uses LPG. In the eastern region, people still use kerosene. In Maluku, Papua, and some areas of Sulawesi, they still use kerosene. So if we increase the kerosene volume, there are indeed arguments of fairness,” Bahlil said.
Meanwhile, there is no proposal to increase the volume quota for 3 kg LPG, which remains at 8 million metric tonnes, and the diesel fuel subsidy remains at Rp1,000 per litre.