DIGIVESTASI - Finance Minister Sri Mulyani revealed that the government has allocated a budget of IDR 421.7 trillion in the 2025 Draft State Budget (RAPBN) to support national energy security. "Energy security is a top priority for the newly elected president, and we have allocated IDR 421.7 trillion for this purpose," Sri Mulyani stated during a press conference on Friday (August 16, 2024). She explained that this budget, prepared at the beginning of Prabowo Subianto's administration for the 2024-2029 period, will be used to increase energy subsidies and compensation, as well as provide fiscal incentives to boost oil and gas lifting.

In the 2025 RAPBN, the budget for energy subsidies and compensation is planned to reach IDR 394.3 trillion, a 17.7% increase compared to the 2024 allocation of IDR 334.8 trillion. Regarding fiscal incentives, Energy and Mineral Resources (ESDM) Minister Arifin Tasrif proposed changes to the profit-sharing scheme and tax regime in the upstream oil and gas sector, including revisions to Government Regulation No. 27/2017 on cost recovery and PP No. 53/2017 regarding gross split. "We will continue to coordinate with technical ministries and coordinating ministries to ensure that fiscal instruments support production and enhance energy security, particularly in terms of oil and gas lifting," Sri Mulyani added.

In addition to the oil and gas sector, this energy security budget will also be allocated to support the development of energy transition efforts. Sri Mulyani mentioned that the implementation of the Energy Transition Mechanism (ETM) will require various fiscal instruments to drive the transformation towards green energy. "We will continue to utilize instruments such as incentives, subsidies, and other interventions," Sri Mulyani concluded.

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