Finance Minister Purbaya to Add Rp 100 Trillion for Energy Subsidies
REPUBLIKA.CO.ID, JAKARTA – Finance Minister Purbaya Yudhi Sadewa has stated that the budget will be increased by Rp 90 trillion–Rp 100 trillion for energy subsidies amid the war between the United States (US), Israel, and Iran, which has caused a global energy crisis.
“Rp 90 trillion–Rp 100 trillion,” said Purbaya when met at Wisma Danantara Indonesia, Jakarta, on Wednesday (1/4/2026).
Purbaya explained that the allocation of up to Rp 100 trillion is intended for energy subsidies, not compensation. The energy commodities covered under the subsidy scheme include 3 kg LPG and diesel.
Meanwhile, compensation refers to funds paid by the government to business entities (such as Pertamina) to cover the difference between the retail price set by the government and the economic price (market price) of fuel oil (BBM).
The commodities covered by the government under the compensation scheme are Pertalite, which is a Special Assignment Fuel Type (JBKP). “That (Rp 90 trillion–Rp 100 trillion) is subsidies. Compensation is separate. I forgot (the compensation figure),” said Purbaya.
Beyond this additional subsidy, the government had previously budgeted Rp 210.1 trillion for energy subsidies, or about 65.87 percent of the total subsidy allocation in the 2026 State Budget (APBN), which is set at Rp 318.9 trillion.
When combined with compensation, the total allocation by the government for energy resilience reaches Rp 381.3 trillion. Purbaya also guaranteed that the State Revenue and Expenditure Budget (APBN) deficit will remain under control until the end of the year.
“We have calculated everything. Even with an average world oil price of $100 per barrel, we have locked the deficit below 3 percent, namely around 2.9 percent. So there’s no problem,” said Purbaya.
In a press conference monitored online in Jakarta on Tuesday (31/3/2026), Purbaya said that budget management continues to be maintained consistently so that the APBN still has room to cushion against global economic turbulence.
Therefore, he asked the public not to worry about the potential widening of the APBN deficit. The government has outlined several scenarios on the impact of rising world oil prices on the APBN.