Realization of fuel, LPG subsidies outstrips ceiling

Jakarta (ANTARA News) - The realization of fuel oil and liquefied petroleum gas (LPG) subsidies has outstripped the ceiling of Rp46.9 trillion as of late September 2018, Director General of Budget at Finance Ministry Askolani said.

By the end of September 2018, the realization of fuel oil and LPG subsidies reached Rp54.3 trillion, accounting for 115.9 percent of the ceiling of Rp46.9 trillion set in the state budget, he stated at a press conference here on Wednesday.

"The realization of fuel oil and LPG subsidies grew 96.7 percent compared to the same period last year," he added.

One of the factors for raising the realization of fuel oil and LPG subsidies is because the government had settled subsidy arrears amounting to Rp12 trillion in the previous year, he noted.

"The increase resulted from the settlement of Rp12 trillion in arrears based on the result of audit by BPK (State Audit Board)," he remarked.

The realization of fuel oil and LPG subsidies will increase after the government has decided to raise the government-borne fuel price to Rp2 thousand per liter from Rp500 per liter, he revealed.

"The price adjustment has an impact on the addition of subsidy spending to support the governments fuel oil policy," he explained.

The realization of electricity subsidy also rose 25.2 percent to reach Rp38.2 trillion, accounting for 80.2 percent of the ceiling of Rp47.7 trillion set in the state budget.

In total, the realization of energy subsidy reached Rp92.5 trillion, or 97.9 percent of the ceiling of Rp94.5 trillion, up 59.1 percent.

Source: ANTARA News

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