October 1, 2025 | 05:00 pm
TEMPO.CO, Jakarta - Indonesian Minister of Finance Purbaya Yudhi Sadewa stated that the current provision of energy subsidies is not entirely on target, with many middle- to upper-class citizens benefiting from the government's policy.
Purbaya described the current subsidy allocation as a form of government bias. "However, Susenas (national socio-economic survey) data shows that the most affluent segment of society, namely deciles 8-10, still enjoys a significant portion of energy subsidies," he said during a meeting with Commission XI of the House of Representatives (DPR) in Jakarta on Tuesday, September 30, 2025.
Based on the data presented by Purbaya, the realization of energy subsidies and compensations disbursed from the State Budget (APBN) reached Rp386.9 trillion in 2024.
Of the total subsidies, the lowest welfare groups (deciles 1, 2, and 3) received benefits of 7%, 9%, and 10% respectively. The group classified as the most affluent (deciles 8, 9, and 10) received a nearly equal share, enjoying 11%, 10%, and 9% respectively of the fuel subsidies.
Increased Subsidized Consumption
Furthermore, the Ministry of Finance data shows a consistent increase in the consumption of various subsidized goods until August 2025. Specifically, subsidized fuel consumption grew by approximately 3.5 percent, 3-kilogram LPG increased by 3.6 percent, subsidized electricity customers grew by 3.8 percent, and subsidized fertilizer users saw the largest jump, increasing by 12.1 percent.
Purbaya noted that this surge in volume indicates that subsidies are an important instrument for maintaining price stability and purchasing power. "However, this volume increase also requires attention to ensure that the subsidy program is more controlled and targeted," he concluded.
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