Indonesia's Energy Subsidy Expenditure Hits Rp345.1 Trillion by November 2025

Significant Allocation Towards Energy Subsidies

The Indonesian Ministry of Finance has revealed that the government has spent Rp345.1 trillion on energy subsidies and compensation by the end of November 2025. This expenditure accounts for 72.6% of the total allocation in the 2025 state budget. The energy subsidies cover various essential commodities including fuel, 3-kilogram LPG, subsidized electricity, and fertilizers.

Fuel Subsidy Realization

For fuel subsidies, the government had set a target of distributing 19 million kiloliters in 2025. By the end of November, the actual distribution had reached 15.6 million kiloliters, representing 80.4% of the annual target. This indicates a strong pace of fuel consumption in the country, necessitating significant subsidy allocations.

Implications of High Subsidy Spending

The substantial expenditure on energy subsidies highlights the government's efforts to maintain energy affordability for the population. However, it also underscores the significant burden these subsidies place on the national budget. The Ministry of Finance continues to monitor the situation closely to ensure that the energy subsidy program is effectively managed throughout the year.