A heated verbal exchange broke out at Finance Commission XI of the House of Representatives (DPR) hearing on Tuesday, September 30, 2025, as Finance Minister Purbaya Yudhi Sadewa and legislators debated conflicting claims over outstanding subsidy and compensation payments to state-owned energy firms PT Pertamina and PT PLN.

Purbaya firmly denied allegations from the companies that the government had failed to disburse subsidies for 2024.

“Subsidies and compensations for 2024 have been fully paid, including the last installment in June for both Pertamina and PLN. So it should already be clear,” the minister said.

He challenged the firms to present their data directly. “If they still claim unpaid amounts, tell them to see me immediately,” Purbaya said.

However, Finance Commission XI chairman Mukhamad Misbakhun countered with figures presented in a late-night meeting with state enterprises the day before, showing tens of trillions of rupiah in arrears.

According to Misbakhun, PLN alone reported Rp27.6 trillion in unpaid compensation for Q1 2025 (stemming from 2024 quotas), Rp13.6 trillion in electricity tariff discounts, and Rp3.82 trillion in 2024 subsidy shortfalls.

“This recurring governance issue in compensation payments must be addressed,” Misbakhun stressed, noting that subsidies exceeding annual quotas are carried over as compensation in the following year’s budget.

In response, Purbaya admitted that delays of four to five months often occur due to verification and audits by the Supreme Audit Agency (BPK) and the Development Finance Comptroller (BPKP).

He pledged to shorten the process. “Going forward, we will improve this so that within one month of submission, the funds can be released,” he said.

Regarding current-year subsidies, Purbaya acknowledged that payments for the first and second quarters of 2025 were still pending but assured lawmakers that they would be disbursed in October.

The minister also defended subsidies as an essential instrument to correct market failures. “Not everyone benefits equally from economic growth. Subsidies ensure inclusivity,” he said, while warning that misallocation could worsen inefficiencies.

During the same session, Purbaya fielded questions about state investment vehicle Danantara, dismissing its criticism of the Finance Ministry.

“I monitor all proposals related to efficiency and cost reduction. If Danantara has issues, they should come to me directly instead of venting to you,” he told legislators.