Jakarta – The Indonesian government is moving to streamline financial support for its state-owned energy companies, Pertamina and PLN, as it navigates ongoing pressures from subsidized fuel and electricity prices. A new Finance Minister Regulation, effective November 19, 2025, accelerates compensation payments to these key enterprises on a monthly basis, a shift from the previous quarterly schedule. The move aims to bolster cash flow and ensure the continued provision of essential energy resources to the public amid global price volatility.
Jakarta –
Indonesia’s Finance Minister Purbaya Yudhi Sadewa has accelerated compensation payments to state-owned enterprises PT Pertamina (Persero) and PT PLN (Persero), a move aimed at easing financial pressures stemming from government-mandated price controls on fuel and electricity. These payments are designed to cover the difference between market prices and the subsidized rates at which the companies are required to sell these essential commodities.
The acceleration is formalized in Finance Minister Regulation (PMK) Number 73 of 2025, concerning the procedures for the provision, calculation, payment, and accountability of compensation funds for revenue shortfalls experienced by these state-owned enterprises due to government-set retail prices for fuel and electricity tariffs. The regulation came into effect on November 19, 2025.
“This regulation provides a framework for managing compensation funds for costs incurred by state-owned enterprises due to assignments that are financially unfavorable, including reasonable margins as stipulated by the government,” the regulation states, as quoted on Friday, November 21, 2025. The move underscores the Indonesian government’s commitment to supporting its key energy providers amidst fluctuating global commodity prices.
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Under the new rules, compensation payments for subsidized fuel and electricity will be made monthly, covering 70% of the results of a monthly calculation review. This represents a significant shift in the payment schedule, designed to improve cash flow for Pertamina and PLN.
Previously, compensation payments were made quarterly, following a review of submitted claims ten days after the end of each fiscal quarter. The change aims to provide more timely financial relief to the state-owned companies.
“The Finance Minister can adjust the percentage based on the country’s financial capacity,” Sadewa stated. “Payment of compensation funds will also be based on audit results from the Supreme Audit Agency (BPK) regarding compensation funds from the previous fiscal year.”
Should the review reveal overpayments, the regulation outlines a process for resolution, including deductions from subsequent payments and/or the return of excess funds to the state treasury.
“The settlement of value-added tax on excess receipts of state-owned enterprises can be in the form of a reduction in value-added tax payments for the next period; and/or a transfer from the tax revenue account to the state treasury account,” he added.
The compensation payments are calculated monthly using a projected fund scheme submitted by the Director General of Budget to the Inspector General for review. An overall review will also be conducted annually by the Financial Supervisory Agency (BPKP).
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