Jakarta, IndonesiaSentinel.com — Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, expressed surprise during a parliamentary hearing after reviewing the ministry’s proposed 2025 budget, which totals just IDR 9.38 trillion (approximately $615 million).
Speaking before the House of Representatives’ Commission VII on Tuesday, August 27, 2024, Bahlil noted the disparity between the ministry’s budget and its significant role in generating non-tax state revenue (PNBP). He pointed out that despite the ESDM Ministry’s role in contributing over IDR 170 trillion ($11 billion) in PNBP—excluding oil and gas—the proposed budget is less than 10% of that amount.
“Considering the scale of our work, this budget seems small. For a ministry like ESDM, which generates significant revenue, this doesn’t make sense. Ideally, our operational costs should be at least 20% of our total PNBP,” Bahlil remarked during the session.
He also highlighted the particularly small budget for renewable energy and energy transition efforts, a critical area as Indonesia moves towards more sustainable energy solutions.
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“The budget allocated to renewable energy is extremely small, yet we are in the midst of an energy transition. This allocation doesn’t align with our objectives,” Bahlil added.
The 2025 budget distribution for the ESDM Ministry includes significant allocations for infrastructure projects, which comprise 57.3% of the total budget.
2025 Budget Breakdown by Sector:
- Secretariat General: IDR 553.6 billion
- Inspectorate General: IDR 138.6 billion
- Directorate General of Oil and Gas: IDR 4.84 trillion
- Directorate General of Electricity: IDR 496 billion
- Directorate General of Mineral and Coal: IDR 735.9 billion
- National Energy Council: IDR 63.7 billion
- Human Resources Development Agency for ESDM: IDR 617.9 billion
- Geological Agency: IDR 929.6 billion
- Downstream Oil and Gas Regulatory Agency: IDR 254.2 billion
- Directorate General of New and Renewable Energy: IDR 657 billion
- Aceh Oil and Gas Management Agency: IDR 92 billion
(Ray)
