The government of Indonesia has allocated Rp 376.8 trillion for subsidies and compensation through 30 September 2026, absorbing 84.3 percent of the total APBN allocation, the Ministry of Finance said.
Subsidy allocations increased from last year
This allocation amount increased from Rp 244.6 trillion allocated for the same period in the previous year, reflecting higher state budget spending to maintain subsidies and compensation programs.
Finance Minister Suahasil Nazara said the rise supports cash flow for entities responsible for pricing subsidized goods under the state budget (APBN), which in turn helps sustain economic activity.
Growth in subsidized program distributions
Several subsidized programs reported increases in distribution and usage during the period, including a 9.1 percent rise in subsidized fuel (BBM) distribution and a 2.2 percent increase in 3-kilogram LPG usage.
Electricity customers increased by 2.1 percent, while subsidized fertilizer distribution grew by 15.7 percent. The distribution of Credit Usaha Rakyat (KUR) loans also rose by 7.9 percent.
Wider economic context noted
Nazara said managing the APBN to protect the public means supporting continued work and usage of BBM, LPG, electricity, fertilizer, and KUR, indicating growth in economic activity.
The increase in subsidy allocations was influenced by movements in Indonesia crude oil prices, rupiah exchange rate fluctuations, and the volume growth of subsidized goods, as well as ongoing global geopolitical tensions linked to the 2022 Russia-Ukraine conflict that contribute to energy price uncertainty.
Related: Indonesia reports budget deficit of Rp 319 trillion by September 2026 · Indonesia pays Rp331.4 trillion in energy subsidies
Source: the Ministry of Finance
