The Ministry of Energy and Mineral Resources (ESDM) and Energy Commission XII of the House of Representatives (DPR) have agreed on the basic assumptions for the energy sector under the draft 2026 state budget (RAPBN), including a higher allocation for electricity subsidies.
ESDM Minister Bahlil Lahadalia said next year’s electricity subsidy has been set at Rp101.72 trillion (US$6.2 billion) up from Rp87.72 trillion (US$5.39 billion) in 2025.
“The increase is due to the growing number of electricity customers eligible for subsidies. We will provide detailed data on the changes in customer numbers as the basis for the adjustment,” Bahlil told legislators during a hearing with Commission XII on Wednesday, August 27, 2025.
He stressed that ESDM minisry and state power utility company PT PLN will ensure the subsidy is used properly. “This is also our task, to oversee the implementation of subsidy spending for PLN,” he added.
In addition to electricity, lawmakers and the government also approved assumptions for other subsidized energy items, LPG 3-kg quota of 8.31 million metric tons, fuel quota of 19.162 million kiloliters, fixed diesel subsidy of Rp1,000 per liter and cost recovery of US$8.5 billion.
Meanwhile, the Indonesian Crude Price (ICP) for 2026 was set at US$70 per barrel.
The agreed oil and gas lifting target is 1.594 million barrels of oil equivalent per day (BOEPD), consisting of oil at 610,000 barrels per day (BOPD) and natural gas at984,000 BOEPD.
Already have an account? Sign In
-
Start reading
Freemium
-
Monthly Subscription
20% OFF$29.75
$37.19/MonthCancel anytime
This offer is open to all new subscribers!
Subscribe now -
Yearly Subscription
33% OFF$228.13
$340.5/YearCancel anytime
This offer is open to all new subscribers!
Subscribe now
Set up email notifications for these topics
