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February 24, 2025 | 11:57 am
TEMPO.CO, Jakarta - The House of Representatives (DPR) has denied claims that subsidized fuel (BBM) will be eliminated. Deputy Chairman of Commission XII, Bambang Haryadi, stressed that any policy related to subsidies must be approved by parliament.
Bambang emphasized that removing fuel subsidies cannot be done without prior discussion in the legislature. “There is no plan to remove fuel subsidies, and any changes to the subsidy mechanism must be approved by the DPR because subsidies are embedded in the state budget (APBN),” he said in an official statement on Monday, February 24. “President Prabowo is committed to protecting the needs of lower-income citizens.”
The Gerindra Party politician reiterated that Prabowo wants fuel subsidies to be more precisely targeted. While acknowledging that current distributions are not always accurate, he assured that improvements will be made. “The President wants subsidies to reach those who truly need them. We recognize that some allocations have been misplaced, but we will work to fix this moving forward,” he stated.
He also clarified comments made by National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan, saying that Luhut was not proposing the removal of subsidies but rather an adjustment to ensure they are better directed. “Perhaps Mr. Luhut’s suggestion is not about eliminating subsidies, but refining the system to ensure they benefit the right people,” he said.
Bambang also noted that in a 2023 working meeting, Commission VII and then-Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif had agreed on the specific allocation of subsidized fuel. Under this agreement, Pertalite would be designated for motorcycles and public transport, while diesel would be reserved for public transportation, logistics, fishermen, and farmers.
Luhut had previously signaled that subsidized fuel might be phased out by 2027, suggesting a shift toward a single fuel price policy. “I’ve discussed this with the President, and within two years, we may be able to implement a uniform pricing system,” he said at the Economic Outlook 2025 event in South Jakarta on February 20. “There will be no more subsidies for fuel, diesel, or other materials.”
Instead, the former Coordinating Minister for Maritime and Investment Affairs proposed that subsidies be distributed directly to those who qualify. “Subsidies should go to those who truly need them,” he said, arguing that such a system could lead to massive savings for the state budget.
“In my view, this is the best approach—we could save billions of dollars,” he concluded.
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