Energy Subsidy Reform is Needed
Based on data compiled by the Finance Ministry, of the 1.79 million kiloliters of biodiesel distributed to households, the poor and vulnerable groups from expenditure deciles 1 to 4 only get 100,000 kl.
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An officer fills Pertalite type of fuel oil (BBM) into an online motorcycle taxi driver's vehicle at a gas station in the Kembangan area, West Jakarta, on Monday (18/7/2022).
JAKARTA, KOMPAS — The government admitted that the provision of energy subsidies, such as for diesel and LPG, has not been effective in targeting the lower class. In this regard, it is necessary to immediately reform subsidies that are right on-target.
In a working committee (panja) meeting to discuss the 2023 State Budget Bill (RAPBN) in Jakarta, on Monday (12/9/2022), the head of the Fiscal Policy Agency (BKF) of the Finance Ministry, Febrio N Kacaribu, explained that until now, subsidies available for household groups that are relatively well-targeted and are enjoyed by the poor and vulnerable groups are only for electricity. Meanwhile, subsidies for fuel oil (BBM) and 3-kilogram LPG cylinders are still predominately enjoyed by the wealthy.