Energy Minister Bahlil Spills Possible Fuel Subsidy Scheme

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. 

Editor’s Choice: Prabowo Meets Energy Minister Bahlil, Discusses Energy Subsidy Plan   

Click here to get the latest news updates from Tempo on Google News

Prabowo Meets Energy Minister Bahlil, Discusses Energy Subsidy Plan

27 hari lalu

Bahlil Lahadalia Explains Why Nickel Downstreaming Continues to Harm the Environment

40 hari lalu

Cash Assistance to Replace Fuel Subsidy, Economist: Must Target Aspiring Middle Class

54 hari lalu

Pertamina Cancels Plan to Limit Subsidized Fuel Purchase

24 September 2024

Gradual Energy Transition Expected to Save Rp90tn of Fuel Subsidy per Year: Minister Luhut

4 September 2024

Energy Minister Bahlill Confirms Plan to Limit Subsidized Fuel Purchases

27 Agustus 2024

Pros and Cons of Bahlil Replacing Airlangga Hartarto as Golkar Chair

14 Agustus 2024

Today's Top 3 News: Indonesia Can Use AI to Save Subsidized Fuel Budget Up to US$3.1bn, Minister Says

12 Agustus 2024

Minister Luhut Backs Artificial Intelligence Use by Pertamina; Claims Subsidized Fuel Efficiency

12 Agustus 2024

Indonesia Can Use AI to Save Subsidized Fuel Budget Up to US$3.1 Billion: Minister

12 Agustus 2024