Energy subsidies, compensation reach 84.3 pct of 2026 target: Minister

Jakarta (ANTARA) - Energy subsidy and compensation payments reached Rp376.8 trillion as of September 2026, Minister of Finance Suahasil Nazara said on Friday.

The realization increased 54.1 percent year-on-year (yoy) compared to the same period last year, equal to 84.3 percent of the target set in the 2026 state budget (APBN).

"Last year, only Rp244.6 trillion had been paid, while this year we have already paid Rp376.8 trillion," Nazara said at a press conference in Jakarta on Friday.

Nazara explained that higher subsidy and compensation payments helped improve the cash flow of businesses distributing subsidized goods, supporting the smooth operation of their businesses.

The increase in payments was also accompanied by higher consumption of several subsidized commodities.

Fuel oil consumption reached 13,408.6 thousand kiloliters, growing 9.1 percent (yoy). Meanwhile, liquefied petroleum gas (LPG) consumption was recorded at 5,761 million kilograms, up 2.2 percent from the same period last year.

"The number of electricity customers increased 2.1 percent, fertilizer volume realization increased 15.7 percent, and the realization of smallholder business credit (KUR) also increased 7.9 percent," he said.

Nazara said energy subsidy and compensation payments were influenced by fluctuations in the Indonesian crude oil price (ICP), the rupiah exchange rate, and higher consumption volumes of subsidized fuel oil, LPG, and electricity.

In addition, oil price volatility due to global geopolitical dynamics could raise energy subsidy budget needs. According to him, Indonesia had faced similar pressure when the Russia-Ukraine conflict occurred in 2022.

Meanwhile, non-energy subsidy realization was mainly driven by higher fertilizer subsidy payments.

Overall, state expenditure through September 2026 reached Rp2,660.5 trillion, or 69.2 percent of the budget ceiling, growing 19 percent year-on-year.

Central government expenditure was realized at Rp2,061.3 trillion, equal to 65.4 percent of the budget ceiling, growing 29.6 percent year-on-year.

The realization consisted of ministry and agency spending of Rp1,069.4 trillion, or 70.8 percent of the budget ceiling, growing 33.5 percent year-on-year. Non-ministry and agency spending reached Rp991.9 trillion, or 60.5 percent of the budget ceiling, up 25.7 percent.

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Translator: Bayu, Kenzu
Editor: Bayu Prasetyo
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