Bahlil unveils new fuel subsidy program - Society

Energy and Mineral Resources Minister Bahlil Lahadalia revealed that the new fuel subsidy program would involve a combination of subsidized goods and direct cash transfers (BLT). This hybrid model aims to strengthen purchasing power while ensuring that subsidies are effectively targeted to those who actually need them.

“Later the president (Prabowo Subianto), God willing, together with us (the ministry), will announce it. But the project is most likely a mix (subsidized products and BLT),” Bahlil said after voting for the 2017 regional elections. Jakarta on Wednesday, cited by tempo.co.

Although Bahlil did not mention an exact date, he confirmed that Prabowo will announce the full plan soon.

“If we are asked when it will be announced, we will see a good day and a good date. After that, I will report to the Minister of Finance for the first step, maybe we will push for a buffer first. The BLT will run first,” he said. said.

Bahlil stressed that the goal was not to eliminate subsidies, but rather to better allocate them to those who need them most. He also clarified that only vehicles with yellow number plates, i.e. public transport vehicles, remain eligible for subsidized fuel.

“One of the (proposals) is that those who qualify for subsidies are vehicles with yellow plates. Angkot (public minibus), why? Transportation costs cannot increase,” Bahlil said.

Bahlil had previously presented several alternatives to better target subsidies, especially since the richest individuals have benefited from subsidized fuels.

One proposal is to shift subsidies to the BLT, but he acknowledged that this would impact sectors such as public transport and micro, small and medium enterprises (MSMEs), as well as public facilities like schools and hospitals, which currently rely on subsidies.

Bahlil also discussed an alternative approach, which consists of maintaining subsidies for public facilities while allocating part of the funds to the BLT. Another option could be to adjust the prices of certain products while continuing to provide subsidies.

Bahlil also said that online ojek (motorcycle taxis) would not be eligible for subsidized fuel.

“(They) are not (subsidized),” Bahlil was quoted as saying by sindonews.com.

The reason for online exclusion ojek was that fuel subsidies were intended for individuals or public transport, not vehicles used in commercial businesses like the Internet. ojek.

Bahlil also noted that some online sites ojek Drivers don’t even own the bikes they ride, as they can rent them to other people. This further disqualifies them from receiving subsidies.

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