Finance Ministry: Fuel and LPG Subsidies and Compensation Surge 266% to Rp118.7 Trillion

Jakarta, CNBC Indonesia - The Ministry of Finance (Kemenkeu) records that subsidies and compensation have reached Rp118.7 trillion, or a growth of 266.5%, by the end of March 2026, compared to the performance in the same period of 2025.

Kemenkeu states that from the total of Rp118.7 trillion, subsidies amounted to Rp52.2 trillion and compensation to Rp66.5 trillion as of 31 March 2026.

“The realisation of subsidies and compensation is influenced by fluctuations in ICP, depreciation of the rupiah exchange rate, as well as increases in the volume of fuel, LPG, and electricity,” Kemenkeu writes in the APBN KITA Report, quoted on Monday (4/5/2026).

Kemenkeu also assesses that volatility in oil prices due to global geopolitical dynamics could increase energy subsidy realisations. However, Indonesia has experience in dealing with such conditions, including the energy price surge during the 2022 Russia-Ukraine conflict.

Specifically, for subsidies disbursed up to the end of March 2026, they consist of fuel subsidies of 3.17 million kilolitres, an increase of 9.2% from the realisation in the same period last year of 2.90 million kilolitres.

Then, for 3 kg LPG, the realisation is 1,419 million kilograms or up 7.5% from March 2025 of 1,368 million kilograms. Subsidised electricity customers also rose from 41.9 million to 42.9 million, or about 2.4% growth.