Energy Subsidy Budget Cut: Pertamina Responds

Pertamina has confirmed its readiness to follow government directives regarding the policy to cut energy subsidies in the 2027 Draft State Budget (RAPBN). The implementation of this policy will be coordinated with the government in its capacity as the regulator.

Corporate Secretary of PT Pertamina Patra Niaga, Roberth Marcelino Verieza Dumatubun, stated that as a business entity, Pertamina will adjust the implementation of the policy on the ground. Coordination with the government is essential for its application and enforcement.

“As a business entity, Pertamina will certainly follow the government’s direction. The implementation and enforcement will certainly be coordinated with the government as the regulator,” Roberth told Republika on Tuesday (8/9/2026).

The Government and the Indonesian House of Representatives’ Budget Committee (Banggar DPR RI) previously agreed to a reduction in the energy subsidy allocation in the 2027 RAPBN by Rp 11.44 trillion. The energy subsidy budget, originally planned at Rp 2 trillion, has been adjusted to Rp 261.50 trillion.

Finance Minister Purbaya Yudhi Sadewa stated that the budget adjustment is primarily influenced by changes in global oil price assumptions, which are projected to be lower. In terms of energy distribution volume, the decrease is considered not to be significant.

“Because the assumption is that global oil prices will fall. There is a slight decrease, but in terms of volume, the reduction is not very large,” Purbaya told journalists in Jakarta on Monday (7/9/2026).

The Finance Minister continued, noting that the government will continue to monitor future developments to determine if further budget efficiencies are required. For now, the revision to energy subsidies is mainly driven by the decline in projected global oil prices.

“We will look ahead to see how we might need to save. But for now, the main reason for the decrease is that global oil prices are predicted to fall, based on the assumptions,” Purbaya explained.

The budget reduction occurs primarily in the subsidies for Specific Type Fuel (BBM Jenis Tertentu) and 3kg LPG. The allocation for these two types of subsidies has decreased from Rp 142.8 trillion to Rp 131.39 trillion.