Complete Breakdown: Government Disburses Rp 281 Trillion in Subsidies for Diesel and Fertilisers

Jakarta, CNBC Indonesia - The realisation of government subsidy spending in the 2025 State Budget (APBN) experienced a decline compared to the previous year, reaching Rp 281.76 trillion from Rp 292.69 trillion.

In the Central Government Financial Report (LKPP) audited by the Supreme Audit Agency (BPK), subsidy spending fell by Rp 10.93 trillion, or 3.74%. This realisation reached 91.50% of the subsidy budget prepared in the 2025 APBN, which amounted to Rp 307.93 trillion.

“The realisation of Subsidy Spending for the 2025 fiscal year reached Rp 281,759,776,982,061 or 91.50% of the amount budgeted in the APBN of Rp 307,931,929,010,000,” as stated in the 2025 LKPP.

The largest subsidy spending was recorded for LPG subsidies at Rp 82.91 trillion, an increase from Rp 80.21 trillion in 2024. Electricity subsidies followed with a realisation of Rp 81.04 trillion, up from Rp 75.82 trillion the previous year.

Conversely, fertiliser subsidies experienced a significant decline. Its realisation fell 30.97% from Rp 47.39 trillion to Rp 32.71 trillion. A decrease also occurred in interest subsidies for other programme credits, shrinking 24.18% from Rp 41.78 trillion to Rp 31.68 trillion.

For diesel fuel subsidies, the realisation rose from Rp 17.12 trillion to Rp 17.58 trillion. The Government-Borne Income Tax (PPh-DTP) subsidy also increased by 35.29% to Rp 11.25 trillion from the previous Rp 8.31 trillion.

A much higher increase occurred in the Government-Borne Value Added Tax (PPN-DTP) subsidy. Its realisation soared 736.82% from Rp 666.51 billion to Rp 5.58 trillion. The Government-Borne Sales Tax on Luxury Goods (PPnBM-DTP) subsidy also surged 1,659.50% to Rp 2.43 trillion, compared to just Rp 138.25 billion in 2024.

The subsidy realisation for PT Kereta Api Indonesia rose slightly from Rp 4.60 trillion to Rp 4.74 trillion. Meanwhile, the subsidy for PT Pelayaran Nasional Indonesia decreased from Rp 3.20 trillion to Rp 3.07 trillion. Housing loan (KPR) interest subsidies also decreased to Rp 3.75 trillion from the previous Rp 4.61 trillion. Kerosene subsidies also fell from Rp 4.47 trillion to Rp 3.64 trillion.

On the other hand, housing down payment assistance subsidies increased by 34.11% from Rp 852.35 billion to Rp 1.14 trillion. The remainder consisted of other Public Service Obligation (PSO) subsidies which rose to Rp 180.67 billion, interest or margin subsidies for the National Economic Recovery Programme which fell to Rp 65.62 billion, and warehouse receipt credit subsidies which increased to Rp 7.27 billion.

The subsidy spending realisation was utilised for energy subsidies consisting of diesel fuel, kerosene, LPG, and electricity subsidies. Meanwhile, non-energy subsidies were mainly used for KUR interest subsidies, housing down payment assistance subsidies, and the distribution of subsidised fertilisers.

The government explained that the realisation of subsidy spending was influenced by movements in the Indonesian Crude Price (ICP), the depreciation of the rupiah exchange rate, as well as the price and distribution volume of fuel, LPG, electricity, and fertilisers. The decline in subsidy spending was also caused by delays in the payment of fertiliser subsidies, energy subsidies, programme credit interest subsidies, subsidies for Government Food Reserves, and the end of the loss limit guarantee service fee subsidy programme for corporations and state-owned enterprises in the context of the Covid-19 National Economic Recovery.