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Jakarta Post

Govt spends big on energy subsidies

  • Marchio Irfan Gorbiano and Viriya P Singgih

    The Jakarta Post

Jakarta   /   Thu, January 4 2018   /  01:26 am

The government bore the brunt of rising commodity prices last year, spending more on energy subsidies than what was set in the revised 2017 state budget.

The government set aside Rp 97.6 trillion (US$7.2 billion) for energy subsidies in 2017, 108.7 percent of the Rp 89.9 trillion allocated in the revised 2017 budget, according to data from the Finance Ministry.

Electricity subsidies increased to Rp 50.6 trillion from the budget ceiling of Rp 45.4 trillion, while fuel subsidies rose to Rp 47 trillion from the Rp 44.5 trillion outlined in the revised budget.

The revised budget put crude oil at $48 per barrel, while oil prices increased steadily during the second half of 2017. Brent crude, for example, peaked at $67.02 per barrel in Dec. 26, according to Bloomberg data.

Finance Minister Sri Mulyani Indrawati said recently there was an energy subsidy increase beca...