Energy Ministry's Indicative Budget Ceiling for 2027 Set at Rp27.33 Trillion
The government has set the indicative budget ceiling for the Ministry of Energy and Mineral Resources (ESDM) for the 2027 fiscal year at Rp27.33 trillion, based on a joint letter from the Minister of Finance and the Minister of National Development Planning/Bappenas.
Tri Winarno, Director General of Mineral and Coal at the Ministry of ESDM, stated during a hearing with Commission XII of the House of Representatives in Jakarta on Monday that of the total indicative ceiling, Rp22.48 trillion, or approximately 82 percent, is allocated for strategic programmes and energy sector infrastructure. Additionally, Rp1.3 trillion, or five percent, is allocated for non-physical public activities, and Rp3.56 trillion, or 13 percent, is for operational expenditure.
Tri explained that the indicative ceiling is then detailed in the 2027 Ministry/Agency Work Plan and Budget (RKA-KL) based on the first-echelon units within the Ministry of ESDM. The breakdown includes the Secretariat General at Rp532.75 billion, the Inspectorate General at Rp124.46 billion, the Directorate General of Oil and Gas at Rp11.35 trillion, the Directorate General of Electricity at Rp10.46 trillion, and the Directorate General of Mineral and Coal at Rp702 billion. Other allocations include the National Energy Council at Rp78.6 billion, the Directorate General of Law Enforcement at Rp86.38 billion, the Human Resources Development Agency (BPSDM) at Rp881.43 billion, the Geological Agency at Rp749.49 billion, the Downstream Oil and Gas Regulatory Agency (BPH Migas) at Rp474.43 billion, the Directorate General of New Renewable Energy and Energy Conservation (EBTKE) at Rp1.8 trillion, and the Aceh Oil and Gas Management Agency (BPMA) at Rp105.31 billion.
In the energy infrastructure sector, Tri outlined several priority programmes planned for 2027, including the procurement of 4,000 converter kits for farmers valued at Rp158.5 billion. Also planned is the construction of one segment of the Dumai–Sei Mangkei (Dusem) natural gas pipeline through a multi-year contract for 2025–2027 worth Rp3.9 trillion, and the development of household gas networks (jargas) for the 2026–2028 period covering 959,232 household connections valued at Rp5.2 trillion. Furthermore, there is the construction of the Semarang–Solo–Yogyakarta gas transmission pipeline segment worth Rp702.3 billion and the Cirebon–Bandung gas transmission pipeline worth Rp577 billion, both using a multi-year contract scheme for 2026–2028. Other programmes include the construction of three Micro-hydro Power Plants (PLTMH) in 2026–2027 worth Rp58.58 billion, an electric stove conversion programme worth Rp815 billion, an electric motorcycle conversion programme worth Rp635 billion, and New Electricity Installation Assistance (BPBL) for 250,000 household connections worth Rp520 billion. For the village electricity programme, the government has allocated Rp9.7 trillion through a multi-year contract scheme. This programme covers 3,054 locations in 2026–2027 worth Rp8.77 trillion, and 101 locations in 2027–2028 worth Rp977.57 billion. The Ministry of ESDM is also planning the construction of one Geomarin V vessel through a multi-year contract with a budget of Rp100.86 billion.