"For the time being, we will implement this state budget scheme as it is still at the start of the year," Director General of Budget at the Finance Ministry, Askolani, said after a press conference on the realization of the 2018 state budget here on Monday.
The government is currently focusing on monitoring the realization of macro assumptions and state revenues and expenditures set in the state budget, he said.
Hence, despite the change in budget allocations for fuel and electricity subsidies, the government is still undecided about proposing a revision of the state budget to the House of Representatives (DPR), he said.
"The subsidies are based on realization so we will continue to control them according to the target," he said.
The government stated earlier that the movement of the rupiah's exchange rate against the dollar and the Indonesian crude price at the start of the year will raise budget allocations for energy subsidies.
The rupiah's exchange rate which has been assumed at RP13,400 per dollar in the state budget is expected to weaken slightly to RP13,500 per dollar.
On the other hand, the Indonesian crude price will increase to US$55-60 from the assumed US$48 per barrel, along with the improving oil prices in the global market.
The movement of the rupiah's exchange rate and the Indonesian crude price is expected to add to fuel subsidy to reach about RP4.1 trillion.
The subsidy hike is needed to adjust diesel oil subsidy from RP500 to RP1,000 per liter in order to reduce the burden of state oil and gas company PT Pertamina's balance sheet.
In addition, electricity subsidy will also increase due to the addition of one million subscribers for households with 450 VA from 23.1 million to RP24.1 million.
"The amount of the extra electricity subsidy is not much different from that of the extra diesel oil subsidy at RP4 trillion," he said.