Budgetary Commission Proposes to Reduce Indonesia’s Energy Subsidies
The Budgetary Committee of Indonesia’s parliament announced on Monday (22/09) that it proposes the government to spend 1.6 percent less on energy subsidies in 2015. Originally the government allocated IDR 363.5 trillion (USD $30.4 billion) for energy subsidies (which involves fuel and electricity subsidies) in 2015, up from IDR 350.3 trillion (USD $29.3 billion) in 2014. This would be good news for president-elect Joko "Jokowi" Widodo as he would imply have more fiscal room for his reform programs.
State spending on energy subsidies in 2015 has now been set at IDR 344.7 trillion (USD $28.8 billion). Later this week, Indonesian parliament will vote on this matter.
Indonesian Energy Subsidies:
| Year | Fuel Subsidies |
Electricity Subsidies |
| 2015 | 276.1 | 68.7 |
| 2014 | 246.5 | 103.8 |
| 2013 | 210.0 | 99.9 |
| 2012 | 211.9 | 94.6 |
| 2011 | 165.2 | 90.4 |
| 2010 | 82.4 | 57.6 |
| 2009 | 45.0 | 49.5 |
| 2008 | 139.1 | 83.9 |
| 2007 | 83.8 | 33.1 |
| 2006 | 64.2 | 30.4 |
| 2005 | 95.6 | 8.9 |
| 2004 | 69.0 | 2.3 |
in trillion rupiah
The new Jokowi-led government is still expected to raise prices of subsidized fuels at the end of the year by between IDR 1,000 and IDR 3,000 per liter in an effort to make funds available for infrastructure, education, healthcare and agriculture.
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