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Government prepares Rp 94.53t in energy subsidies for next year
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Residents queue up to buy 3-kilogram liquefied petroleum gas canisters in Surakarta, Central Java. (Antara/File)
T
he government will allocate Rp 94.53 trillion (US$7.12 billion) in 2018 for energy subsidies in the form of transportation and cooking fuel, diesel fuel, three-kilogram liquefied petroleum gas (LPG) canisters, kerosene and electricity.
The figure is higher than this year’s allocation, which is set at Rp 89.87 trillion, but lower than the Rp 103.37 trillion initially planned in the financial note of the 2018 State Budget.
For the three-kilogram LPG canisters alone, the government will allocate Rp 41.53 trillion. “This is to assure that the canisters are available,” said the Finance Ministry’s fiscal policy head, Suahasil Nazara, as reported by kontan.co.id on Tuesday.
Read also: Ballooning energy subsidy to keep people happyMeanwhile, the Energy and Mineral Resources Ministry’s oil and gas director general, Eko Syahrial, said the increase in the supply of the canisters was needed to help fishermen who wanted to shift to LPG from other types of fuel next year.
He added that other households would also shift from kerosene to LPG, particularly those in eastern Indonesia.
“We have allocated 3 percent of reserves for the three-kilogram LPG canisters next year,” he added. (bbn)
