To Protect Purchasing Power, the Government Has Allocated Rp 153.1 Trillion for Subsidies and Compensation

JAKARTA, KOMPAS.com - The Ministry of Finance noted that realisation of subsidies and compensation spending reached Rp 153.1 trillion as of 30 April 2026. The figure is equivalent to 34.4 percent of the State Budget (APBN) ceiling for this year.

Finance Minister Purbaya Yudhi Sadewa said that subsidy and compensation spending is used by the government to safeguard the purchasing power of households amid global pressures and the weakening rupiah.

“Subsidy and compensation spending to safeguard the purchasing power of the people, yes we pay in accordance with what PLN and Pertamina request,” Purbaya said at the APBN KiTa press conference, April 2026 edition, in Jakarta, on Tuesday (19 May 2026).

Purbaya explained that the high realisation of subsidies is influenced by fluctuations in Indonesia’s crude oil price (ICP), depreciation of the rupiah, and the increasing volume of energy consumption by the public.

In addition, the government also pays upfront fertiliser subsidy payments and bears the higher distribution of subsidised fuel, LPG, and subsidised electricity.

Nevertheless, the government assures the situation remains under control, noting Indonesia previously faced spikes in global energy prices during the Russia-Ukraine conflict in 2022.

As of April 2026, the government noted subsidised fuel distribution reached 4,704.6 thousand kilolitres, up 8.2 percent from the same period last year.

Meanwhile, distribution of 3 kilogram LPG reached 2,152.8 million kilograms, up 3.7 percent.

For electricity subsidies, the government has reached 42.9 million customers, up 2.2 percent.

Subsidised fertiliser distributed amounted to 2.9 million tonnes, up 25.2 percent.

On the other hand, lending under the People’s Credit (Kredit Usaha Rakyat – KUR) scheme has been extended to 1.54 million borrowers over the first four months of this year.

Overall, central government expenditure realised up to April 2026 reached Rp 826 trillion, up 51.1 percent compared with the same period last year.

Ministry/agency expenditure totalled Rp 400.5 trillion, up 57.9 percent, while non-ministry/agency expenditure realised Rp 425.5 trillion, up 45.2 percent.