President Prabowo Subianto has authorized a significant increase in the subsidized 3 Kg liquefied petroleum gas (LPG) quota, adding approximately 350,000 tons. This crucial decision aims to proactively meet the anticipated surge in demand during the upcoming long holiday season of Christmas and New Year (Nataru) 2026.
The increase was announced by Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia following a restricted cabinet meeting with President Prabowo at Merdeka Palace in Jakarta on Thursday (27/11). Minister Bahlil underscored the importance of this additional quota, stating, “There is an addition of 350,000 tons to anticipate the needs for Nataru,” ensuring stable supply for households during peak consumption periods.
Crucially, Minister Bahlil affirmed that this expansion of the 3 Kg subsidized LPG allocation will not strain the 2025 State Budget (APBN). He explained that Indonesia’s crude oil prices throughout the current year have remained below the APBN’s initial assumptions, thereby creating ample fiscal space for the government to accommodate the increased quota.
Elaborating on the financial specifics, Bahlil highlighted, “The allocation in the 2025 APBN is Rp 82 trillion, while the realization, even with the additional 350,000 tons, will only be around Rp 77 trillion to Rp 78 trillion.” This positive outlook was further corroborated by Minister of Finance Purbaya Yudhi Sadewa, who also projected that the anticipated rise in subsidized 3 Kg LPG consumption this year would similarly not adversely affect the budget.
Minister Purbaya clarified, “Global LPG prices are currently on a downward trend, ensuring that even with the increased volume being fulfilled, the total subsidy budget for 2025 will not be exceeded.” This strategic move to bolster the LPG quota was previously a key discussion point between Minister Bahlil and Minister Purbaya at the ESDM Ministry office on Tuesday (25/11), a meeting that also saw the participation of PT Pertamina Patra Niaga President Director Mars Ega Legowo Putra.
The fiscal prudence behind this decision is anchored by global market dynamics. The 2025 APBN designates the price of gas produced by Saudi Aramco as the benchmark for its LPG subsidy expenditures. According to data from Saudi Aramco, both propane and butane prices have exhibited a consistent monthly and annual decline since May leading up to the current month.
Specifically, Saudi Aramco’s propane price has seen a substantial year-on-year (yoy) reduction of 25.2%, settling at US$ 475 per ton in November. Concurrently, butane prices have experienced an even sharper decline, plummeting nearly 27% yoy to reach US$ 460 per ton. These favorable international price trends significantly contribute to the government’s ability to expand subsidized LPG supply without fiscal strain, ensuring affordability and availability for the public.
Summary
President Prabowo Subianto telah menyetujui penambahan kuota LPG bersubsidi 3 Kg sekitar 350.000 ton. Keputusan penting ini, yang diumumkan oleh Menteri ESDM Bahlil Lahadalia, bertujuan untuk memenuhi lonjakan permintaan yang diantisipasi selama musim liburan Natal dan Tahun Baru 2026, memastikan pasokan stabil untuk rumah tangga.
Menteri Bahlil menegaskan bahwa penambahan alokasi ini tidak akan membebani APBN 2025 karena harga minyak mentah lebih rendah dari asumsi awal. Menteri Keuangan Purbaya Yudhi Sadewa membenarkan, menyatakan bahwa harga LPG global yang menurun, dengan patokan harga Saudi Aramco, menjamin anggaran subsidi tidak akan terlampaui.
