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November 27, 2024 | 05:54 pm
TEMPO.CO, Jakarta - Minister of Energy and Mineral Resources Bahlil Lahadalia spilled the scheme for subsidized fuel (BBM). The fuel subsidy will use a combined system of subsidized goods and direct cash assistance (BLT).
"We will hopefully announce it together with President Prabowo,” he said on Wednesday, November 27, 2024, adding that the subsidy is likely to use a blending scheme.
Bahlil said this scheme will increase Indonesian people’s purchasing power and ensure a precise target. The Golkar Party chair, however, stopped short of revealing when President Prabowo will officially announce the scheme.
"I’ll report to the Finance Minister, and we will likely proceed with the BLT first for cushioning," said Bahlil.
Bahlil emphasized that the subsidy will not be eliminated but redirected to those eligible for the subsidies. For subsidized goods, only yellow-plate vehicles are eligible, as the fares of public transportation must not increase.
Previously, Minister of Energy and Mineral Resources Bahlil Lahadalia prepared three formulations that could be alternatives to implementing fuel oil (BBM) and electricity subsidies to ensure precise targeting as many people with above-average financial capabilities enjoy the subsidy.
"It turns out that luxurious cars also use fuel subsidies, so Prabowo formed a team to ensure targeted subsidies, where the Energy and Mineral Resources Ministry is assigned as the team leader," said Bahlil in a working meeting with DPR on Wednesday, November 13, 2024.
Bahlil said one of the proposed formulations is to shift fuel subsidies to direct cash assistance. However, this step will affect public transportation, SMEs, and public facilities such as schools and hospitals.
Bahlil also revealed another alternative: continue providing subsidies in the form of goods to public facilities to help control inflation, while some funds will be allocated as direct cash assistance. The third formulation Bahlil suggested was increasing the prices of some subsidized goods.
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