Energy Subsidy Policy and Government Fiscal Space

Policy can be viewed as the process of implementing one's own decisions, usually in the form of laws, government regulations, judicial decisions, executive orders, or presidential decrees. Public policy is the strategic use of existing resources to solve public problems. One of the important public policies is the subsidy policy because it has a close relationship with the government's fiscal space. One of the important public policies is the subsidy policy because it has a close relationship with the government's fiscal space. Subsidy policies can be in the form of energy subsidies and non-energy subsidies. In implementing the energy subsidy control program, the government faces various challenges, including the distribution system that is still open, not yet optimal in monitoring, and external and international geopolitical factors that affect production prices and the stability of the rupiah exchange rate. Subsidy policies, especially for energy subsidies, must be pursued efficiently, thereby creating price stability for goods and services, providing protection for low-income people, increasing production, and providing benefits for economic activities and society