JAKARTA. Finance Minister Sri Mulyani revealed that the budget for energy subsidies in the 2020 State Budget Draft (RAPBN) is lower than the previous years, due to the exchange rate of rupiah against US dollars and commodity prices.
"Subsidies in the APBN are based on volume, linked to prices. Prices are influenced by exchange rates and commodity prices," Sri Mulyani said, Tuesday (8/20).
In the 2020 State Budget Draft, budget for energy subsidies fell from Rp 142.6 trillion to Rp 137.5 trillion. This subsidy will be used for electricity, fuel, and Liquified Petroleum Gas (LPG).
Subsidies for fuel and LPG subsidies was reduced from Rp 91.1 trillion to Rp 75.2 trillion, while subsidies for electricity was raised from Rp 52.3 trillion to Rp 62.2 trillion.
Separately, the Director-General of Budget of the Ministry of Finance Askolani stated that the reduction in energy subsidies in 2020 was done since it did not take into account the overall underpayment of subsidies. Thus, the amount needed is lower. (AM/AR)