Jakarta—The government is considering a new policy regarding fuel subsidies, with the main focus on removing subsidies for black-plate or privately owned motorcycles. Minister of Energy and Mineral Resources Bahlil Lahadalia told a press conference on Wednesday, December 4, that the fuel subsidy distribution formula is still under discussion. However, some aspects are starting to narrow down.
“We are studying how this subsidy can be better targeted. Subsidies will still be given to yellow plate vehicles, especially public transportation. However, this is still a matter of study for black-plate motorcycles, including for online motorcycle taxis (ojol),” Bahlil explained.
However, Bahlil emphasised that motorcycles used for businesses such as ride-hailing services will still receive subsidies because they are categorised as part of micro, small and medium enterprises (MSMEs). One approach being considered is to differentiate between black-plated motorcycles for personal use and those used for business activities.
Subsidised fuels and potential impacts
To date, the government subsidizes two main types of fuel: biodiesel for diesel-fueled vehicles and Pertalite, which is widely used by motor vehicles, including motorcycles. If this subsidy is removed for black-plated motorcycles, the fuel price for this category of users will be adjusted to the market price.
“If world oil prices rise, fuel prices will also rise. Conversely, if oil prices fall, fuel prices will also fall. However, this could be a challenge for people dependent on subsidised fuel,” Bahlil said.
Bahlil also explained that the government is reviewing a mixed subsidy scheme, partly through direct fuel subsidies and partly through direct cash transfers (BLT).
“We are still designing a subsidy scheme that may include goods subsidies and partial conversion to BLT. For MSMEs, fuel subsidies are likely to be maintained,” he explained.
In this process, the government is working with the Central Statistics Agency (BPS) to update data on subsidy recipients. “We want accurate data so that this assistance is truly targeted. When this data is finalised, we will immediately announce the final decision,” Bahlil added. He said that with the policy still being finalised, the public is encouraged to wait for an official announcement from the government regarding the implementation of this new pattern of fuel subsidies. (Hartatik)
