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Why Indonesia Cuts Energy Subsidy Spending in 2027 State Budget

Summary by tempo.co
The Indonesian parliament has agreed to cut the energy subsidy budget in the 2027 State Budget at Rp261.5 trillion.

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The Indonesian government and the Indonesian House of Representatives (DPR RI) agreed to cut the energy subsidy budget in the 2027 State Budget to IDR 261,502 trillion.

Government and DPR RI agree on energy subsidy budget in State Revenue and Expenditure Budget Act 2027 amounting to IDR 261.5 trillion

The 2027 energy subsidy was cut by Rp11.44 trillion. The House of Representatives (DPR) stated that improving recipient data was necessary because the poor actually received fewer benefits.

Fuel and 3 kg LPG subsidies in the 2027 State Budget were reduced by IDR 11.4 trillion from the initial proposal to IDR 261.5 trillion.

REPUBLIKA.CO.ID, JAKARTA -- The Indonesian government and the House of Representatives (DPR RI) have agreed on an energy subsidy budget in the 2027 State Budget Law (UU APBN) of Rp 261.5 trillion, a decrease of Rp 11.44 trillion...

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katadata.co.id broke the news on Monday, September 28, 2026.
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