Minister Proposes Three Approaches to Streamline Fuel Subsidies

Jakarta, VIVA – Minister of Energy and Mineral Resources Bahlil Lahadalia revealed that there are three potential schemes for distributing fuel and electricity subsidies to ensure they reach the right targets.

Minister Lahadalia stated that the first option is to convert all fuel subsidies into direct cash assistance (BLT).

“However, this option would mean that hospitals, schools, churches, mosques, MSMEs, and public transportation, which have been receiving subsidies, would no longer receive them,” the minister said on Wednesday (Nov 13).

The second option is to maintain fuel subsidies in the form of goods for all transportation and public facilities. This approach is intended to curb inflation. Meanwhile, most of the subsidies for individuals would be converted into BLT.

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Menteri ESDM, Bahlil Lahadalia

Photo :

• VIVA.co.id/Edwin Firdaus

The third alternative is to increase the price of subsidized fuel, “However, today I cannot provide specific details as it is still under discussion,”

Minister Lahadalia stated that these three options are still in the discussion stage, and no final decision has been made.

The government will first report the findings of the study to the president before presenting them to the Indonesian House of Representatives. 

Meanwhile, regarding LPG subsidies, the minister noted that the government has decided to retain their distribution in the form of goods.

This decision responds to feedback from various parties, especially micro, small, and medium enterprises (MSMEs).

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The government will first report the findings of the study to the president before presenting them to the Indonesian House of Representatives.