Discussing the 2024 Energy Subsidy Budget Reaching IDR 189.1 Trillion, Here are the Details

JAKARTA – PT Pertamina (Persero) stated that he was ready to carry out the Government’s distribution assignment 2024 energy subsidies right on target. Through PT Pertamina Patra Niaga as Subholding Commercial & Trading, BUMN Holding Oil and Gas (Migas) will ensure that the distribution of subsidized energy can reach underprivileged communities in all corners of the country at affordable prices.

For information, in 2024, Pertamina will have the task of distributing Subsidized Fuel for certain types of fuel oil (JBT), kerosene with a quota of 0.5 million kilo liters (KL), JBT diesel oil with a quota of 17.8 million KL, and 3 kg LPG cylinders of 8.03 million metric tons (MT).

The size of the JBT quota for Diesel Oil and Kerosene is based on the Decree of the Head of BPH Migas No. 89/P3JBT/BPH MIGAS/KOM/2023, while the LPG quota is based on ESDM Ministerial Decree No.446.K/MG.05/DJM/2023. To implement the Energy Subsidy, the Government and Pertamina have signed the 2024 Energy Subsidy Contract.

Director General of Budget of the Indonesian Ministry of Finance, Isa Rachmatarwata, said that the government as a whole allocated a 2024 energy subsidy budget of IDR 189.1 trillion which includes subsidies for certain types of fuel oil (JBT), 3 kg LPG cylinders and electricity.

Of this amount, IDR 25.8 trillion was allocated for JBT subsidies and IDR 87.4 trillion was allocated for 3 Kg LPG cylinder subsidies.

“This is not a small number and we want to ensure that this goes to the right parties. This means that those who are entitled to subsidies are the ones who should actually get the subsidized goods,” said Isa at the signing ceremony for the 2024 Energy Subsidy Contract in Jakarta, Thursday (14/3/2024).

According to him, energy subsidies are the Government’s commitment to maintain people’s purchasing power and the productivity of small businesses, which in turn will encourage national economic growth.

“Subsidies have always been important for our country, because with subsidies the government can be present directly to the community and help the community deal with price fluctuations, availability of supplies, and so on,” added Isa.

Through the 2024 Energy Subsidy Contract, the Government invites Pertamina to improve governance and ensure energy subsidies are received by the right community groups.