Jakarta – Through the Ministry of Energy and Mineral Resources (MEMR), the government is still reviewing the energy subsidy scheme to make it more targeted, especially for 3-kilogram LPG canisters, fuel, and electricity. Minister of Energy and Mineral Resources Bahlil Lahadalia said that the 3-kilogram LPG subsidy will continue without change while the fuel and electricity subsidies are still under further evaluation.
“We have proposed that there will be no change in the 3-kg LPG subsidy. This policy is important for MSMEs, housewives, and household consumption. However, fuel and electricity subsidies need to be studied more deeply to be more effective,” Bahlil explained in a press conference after a cross-ministerial coordination meeting in Jakarta on Monday, November 4.
Bahlil explained that the 3-kg LPG subsidy will still be given under the current scheme, given that this subsidised gas is essential for low-income people. “We want to ensure that people who need it can still enjoy the 3-kg LPG subsidy without change,” he added.
However, regarding fuel and electricity subsidies, Bahlil revealed the need for a more detailed evaluation by involving reports from various institutions, such as BPH Migas, Pertamina, and PLN. “For fuel and electricity, the study is continuing. We want to ensure its accuracy so that this recommendation will be reported to President Prabowo Subianto later,” he said.
Several options are being considered, including the possibility of providing subsidies in the form of Direct Cash Assistance (BLT) as an alternative to less targeted subsidies. Bahlil stated, “BLT is one of the more focused options, and the decision will be announced at the right time”.
A more targeted subsidy policy is vital so that the community groups in need feel the assistance provided. “Some of these subsidies remain in the form of goods, but we are also considering cash for those not on target. The goal is that the subsidy funds are truly felt by the people who deserve it,” Bahlil said, closing his statement. (Hartatik)
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