00:00Indonesia's Oil and Gas Industry
00:05The weakness of the exchange rate and the rise in the world's oil prices
00:09due to the long-term Middle East conflict
00:12has been acknowledged by the government as having an impact on energy subsidies.
00:15Until July 2024,
00:17the government has awarded subsidies to the World Bank worth Rp10.4 trillion
00:21and LPG subsidies worth Rp40.4 trillion.
00:26The weakness of the exchange rate and the rise in the world's oil prices
00:32due to the long-term Middle East conflict
00:35has been acknowledged by the government as having an impact on energy subsidies.
00:39Until July 2024,
00:41the government has awarded subsidies to the World Bank worth Rp50.8 trillion
00:47and LPG subsidies worth Rp10.4 trillion
00:53or Rp8.66 trillion.
00:58Meanwhile, LPG subsidies worth Rp3 trillion
01:00have reached Rp40.4 trillion
01:03or Rp4.02 trillion.
01:07The head of the Ministry of Finance, Kacaribu, has admitted
01:11that the weakness of the exchange rate throughout this year
01:14has burdened the budget of energy subsidies that the government must bear.
01:18However, the government is optimistic.
01:21Energy subsidy spending for the rest of this year
01:23is still in the range that can be anticipated.
01:28What is enough to deviate is the exchange rate.
01:32The exchange rate in 2024 is Rp15,000.
01:35So far, the year-to-date is around Rp15,900.
01:40Of course, this will increase the burden of energy subsidies and compensation.
01:49However, as we can see,
01:50it was reported yesterday that
01:53until the end of the year,
01:56this will still be under control
01:58and within the limits that we can accommodate.
02:02As is known,
02:03the government allocated a budget
02:05to spend energy subsidies in 2024
02:08worth Rp189.1 trillion.
02:13This budget increases significantly
02:15compared to the 2023 implementation
02:17which reached Rp164.29 trillion.
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