Indonesia's Fuel Subsidy Revealed: True Cost of Pertalite Fuel

Government Bears Significant Portion of Fuel Costs

Finance Minister Purbaya Yudhi Sadewa recently disclosed the actual costs of subsidized fuels in Indonesia, revealing the substantial burden on the national budget. The actual cost of Pertalite fuel is Rp 11,700/liter, while consumers pay only Rp 10,000/liter at the pump. This means the government bears Rp 1,700/liter or 15% of the cost through compensation mechanisms.

Diesel Fuel Subsidy Even Higher

The situation is more pronounced with diesel fuel. The actual cost reaches Rp 11,950/liter, but consumers only pay Rp 6,800/liter. Consequently, the government subsidy for diesel amounts to Rp 5,150/liter, significantly higher than Pertalite. These figures underscore the substantial financial burden on the state budget (APBN) due to fuel subsidies.

Implications for State Budget (APBN)

The revelation highlights the considerable strain fuel subsidies put on public finances. The government must balance the need to maintain affordable fuel prices for consumers with the fiscal burden of subsidies. As energy prices fluctuate globally, managing these subsidies remains a critical challenge for Indonesia's fiscal policy.