Subsidy and Compensation Realisation Hits Rp331.4 Trillion, Swelling by 52.1%
The realisation of government subsidies and compensation up to 31 August 2026 has reached Rp331.4 trillion. This figure represents a 52.1 per cent increase compared to the same period in the previous year.
In detail, subsidy realisation reached Rp177.1 trillion, while compensation reached Rp154.1 trillion.
Director General of Budget, Sudarto, stated that the Ministry of Finance will continue to monitor and anticipate realisation until the end of the year.
“Regarding subsidies and compensation, as the Minister has stated, the realisation up to August this year has increased higher than last year, and we are certainly continuing to anticipate the realisation until the end of the year,” said Sudarto during an APBN press conference at the Juanda Building on Friday (18/9/2026).
On the other hand, Finance Minister Suahasil Nazara emphasised that payments for subsidies and compensation to State-Owned Enterprises (SOEs), including PLN and Pertamina as providers of electricity and fuel, are currently carried out every month. This mechanism, according to Suahasil, also influences the total value of subsidy and compensation realisation in 2026.
“We have paid Rp331.4 trillion in subsidy and compensation realisation. Compensation payments are now conducted monthly, and subsidy payments to PLN and Pertamina are also carried out monthly,” Suahasil said.
Furthermore, the significant surge in the value of subsidy and compensation realisation was caused by fluctuations in benchmark oil prices, the Rupiah exchange rate, and an increase in the consumption volume of fuel (BBM), LPG, and subsidised electricity.
Additionally, the volatility of crude oil prices due to global geopolitical dynamics can increase Indonesia’s energy subsidy realisation; the country has experience facing such conditions in 2022 during the Russia-Ukraine conflict. Another factor is non-energy subsidies, which are primarily influenced by the increase in fertiliser subsidy payments.