JAKARTA, April 1 (Xinhua) -- Indonesia's energy subsidies could increase by up to 100 trillion rupiahs (about 5.9 billion U.S. dollars) this year if domestic fuel prices remain unchanged, Finance Minister Purbaya Yudhi Sadewa said on Wednesday.
The state budget currently allocates 210 trillion rupiahs (approximately 12.3 billion U.S. dollars) for energy subsidies.
The projected increase comes amid rising global oil prices, while the government maintains fixed prices for both subsidized and non-subsidized fuels.
"Additional subsidies could reach between 90 trillion and 100 trillion rupiahs (5.3 billion to 5.9 billion U.S. dollars). Other compensations are calculated separately," Purbaya told reporters. He added that every one U.S. dollar increase in global oil prices would raise the subsidy burden by around 6 trillion rupiahs (about 353 million U.S. dollars).
To cover the potential shortfall, the government plans to undertake budget refocusing measures estimated at up to 130 trillion rupiahs (about 7.6 billion U.S. dollars), and may also utilize surplus state funds totaling 420 trillion rupiahs (24.7 billion U.S. dollars) if necessary.
Meanwhile, Minister of Energy and Mineral Resources Bahlil Lahadalia said on Tuesday that subsidized fuel prices would remain unchanged, while discussions on pricing adjustments for non-subsidized fuels with state-owned energy firm Pertamina and private operators are ongoing. ■
