Indonesia's 2022 energy subsidies may rise, 2023 bill may shrink, finance minister says

Indonesia's Finance Minister Sri Mulyani Indrawati speaks at an opening for High Level Seminar, Strengthening Global Collaboration for Tackling Food and Insecurity, during the G20 Finance Ministers and Central Bank Governors Meeting in Nusa Dua, Bali, Indonesia, July 15, 2022. Sonny Tumbelaka

JAKARTA, Aug 16 (Reuters) - Indonesia's energy subsidies and compensation may surpass the allocated budget of 502 trillion rupiah ($34 billion) this year amid rising demand for subsidised fuels, the finance minister told a news conference on Tuesday.

The government has proposed lowering energy subsidies and compensation for 2023 to 336.7 trillion rupiah, assuming global oil prices ease to around $90 a barrel next year, the rupiah trades "at a better level", and consumption of subsidised fuel and LPG can be better controlled, Sri Mulyani Indrawati said.

($1 = 14,765.0000 rupiah)

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Reporting by Gayatri Suroyo, Stefanno Sulaiman, Fransiska Nangoy, Bernadette Christina and Ananda Teresia; editing by Jason Neely

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