2021-2023 Energy subsidies

The global energy crisis induced a sharp rise in the amounts dedicated by the Indonesian government to consumer subsidies and compensations for electricity, fuels and liquefied petroleum gas. 

The related government budget saw a 39% rise for the year 2021, reaching IDR 243 trillion ; in 2022, the soaring cost of this assistance above IDR 502 trillion led policymakers to redirect the fuel support component to poorest consumers- notably through a transfer to subnational authorities in order to specifically support public transports, taxi companies and fishermen, and earmark part of the fuel subsidy budget for wage assistance. 

The subsidies were also revised downward in September 2022, and the 2023 government budget has a provisional IDR 210 trillion earmarked for energy subsidies.

Fiscal pressures brought by the global energy crisis also led the government to suspend in 2022 its the conversion program of 3-kilogram LPG stoves to electric ones.

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