JAKARTA: Indonesia's total energy subsidy spending is estimated to surge 52 percent to 148.9 trillion rupiah ($10 billion) in 2018, data from the Energy and Mineral Resources Ministry showed on Monday, as a result of increasing costs of subsidised fuels. "If oil prices increase, of course, the subsidies need to be increased," Energy Minister Ignasius Jonan told reporters at a press conference.
Referring to the data, Jonan said the 2018 energy subsidy spending would be covered by revenues from the energy, coal and minerals sector, which he estimates will reach 240 trillion rupiah this year.
The estimated increase in spending is, however, less than a July proposal by the Finance Ministry to increase energy subsidies to 163.5 trillion rupiah. It was not immediately clear why the latest estimate was lower than the previous proposal.
In March, the government said it would keep power tariffs for poor households and some fuel prices flat until 2019.