ANALYSIS OF THE EFFECT OF ENERGY SUBSIDIES ON STATE EXPENDITURES AND FISCAL SECURITY IN INDONESIA

This study analyzes the impact of energy subsidies on state expenditures and fiscal resilience in Indonesia. Using time series data from 2020 to 2024, this research employs descriptive analysis to determine how energy subsidy policies affect government spending and the long-term sustainability of fiscal policy. The results show that increasing energy subsidies significantly burdens the state budget, reduces fiscal flexibility, and potentially hampers the government’s ability to respond to macroeconomic shocks. A reduction or better targeting of energy subsidies is essential to maintain fiscal resilience and allocate state spending to more productive sectors.