Jakarta (ANTARA) - The government’s budget for electricity subsidies in 2025 will increase by over 23 percent to Rp90.22 trillion (USD5.86 billion) from Rp73.24 trillion in 2024, according to Minister of Energy and Mineral Resources Bahlil Lahadalia.
The budget increase will be driven by a projected rise in the number of electricity subsidy recipients, which is expected to reach 42.08 million in 2025, up from a target of 40.89 million in 2024.
“The number of electricity subsidy recipients is expected to increase by around 1 million, leading to a rise in the subsidy budget,” Bahlil said.
Earlier, the director general of electricity, Jisman Hutajulu, said that the electricity subsidy figure was calculated based on several assumptions, including an exchange rate of Rp15,300–Rp16,000 per US dollar, Indonesian crude oil price of $75–$85 per barrel, and inflation of 1.5–3.5 percent.
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“This is in line with the 2025 macroeconomic framework and key fiscal policy guidelines,” he informed during a hearing with the House of Representatives’ Commission VII on Monday.
The targeted subsidy recipients will include households using 900 VA or less of electricity, small businesses, and social institutions.