DPR Budget Committee Proposes Stopping Electricity Compensation for the Wealthy and Industry
The Chairman of the House of Representatives’ Budget Committee (Banggar), Said Abdullah, has responded to the economic situation amid the ongoing Middle East conflict. Said Abdullah conveyed several proposals to the government to address global geopolitical challenges.
“We must have, well, we must have a high level of sensitivity because we indeed face extraordinary challenges, both geopolitically, regarding Israel, America, Iran, and of course the Gulf countries,” Said said at the parliamentary complex in Senayan, Central Jakarta, on Tuesday (31/3/2026).
Said believes that the DPR and the government share the same view in maintaining Indonesia’s fiscal health. Said proposed that the government must reallocate the budget for non-priority expenditures.
“Therefore, there are four things I want to convey to the government. The first, like it or not, whether we like it or not, the government must still carry out reallocation of non-urgent priority expenditures,” Said stated.
He also highlighted fuel savings that have begun to be implemented by several countries. He said that reallocation of the BA BUN (State Treasury Budget Section) budget that has not yet been used must also be considered, especially for the government’s priority programmes.
“Reallocation, both reallocation of expenditures in the BA BUN that have not been disbursed, including, say, the National Nutrition Agency,” Said said.
“Then, as the Chairman of Banggar, I permit the measured use of SAL (Surplus Budget Balance). Our SAL is still Rp 370 T. Well, in the BA BUN National Nutrition Agency, there is Rp 67 (trillion),” he continued.
He stated that there must be sensitivity in budget utilisation. This PDIP DPP Chairman then urged that electricity compensation for the wealthy and industry be stopped to maintain fiscal strength.
“Reallocation of priority programmes, the government will certainly postpone programmes that can still be postponed. Including, I urge the government to stop electricity compensation for the wealthy and industry,” Said said.
He stated that with the cessation of that compensation, the state budget deficit would be below 3 percent. According to him, Indonesia’s economic growth could also be maintained.
“Stop it, don’t continue it. If that is done by the government, I am confident that our state budget will still have a deficit below 3% and growth can be achieved,” he explained.
Said said that electricity compensation for the wealthy and industry is still being carried out to this day. However, he continued, Banggar has been shouting about that policy since 2017.
“It’s still in the compensation, even though Banggar has been shouting since 2017. Industry too. If it’s for the wealthy, it’s called compensation; when it’s for the poor, it’s called subsidy,” Said said.
“From the beginning, it has been racist. That’s what we must not do. But for the middle class, compensation should continue, right? How can we not give incentives to the middle class? That’s impossible,” he added.