Energy Minister Bahlill Confirms Plan to Limit Subsidized Fuel Purchases

TEMPO.CO, Jakarta - Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has confirmed plans to limit the purchase of subsidized fuel starting October 1, 2024. “There is indeed a plan [to limit it],” Bahlil told reporters after a working meeting with the House of Representatives (DPR) Commission VII at the Parliament Building, on Tuesday, August 27, 2024.

According to him, the restriction will be implemented after the issuance of a Ministerial Regulation (Permen) from the ESDM Ministry, rather than through a revision of Presidential Regulation No. 191 of 2024, which has not been completed to date.

The Ministerial Regulation will outline the specific criteria for subsidized fuel recipients. Bahlil stopped short of revealing the details. He urged luxury vehicle users to refrain from using subsidized fuel, emphasizing the need to ensure efficient and targeted distribution of this essential commodity.

“Those who are entitled to receive subsidies are the lower middle-class people,” said the Golkar Party General Chairman.

The discourse on limiting subsidized fuel purchases has been ongoing for several months. Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan previously suggested implementing such restrictions to address budget waste. In July, Luhut proposed reducing the number of individuals who are not eligible for subsidies in a bid to tackle budget waste.

However, the Minister of Energy and Mineral Resources at the time, Arifin Tasrif, denied these plans, stating that the government was only focused on ensuring the targeted distribution of subsidized fuel.

Eddy Soeparno, Deputy Chairman of Commission VII, expressed support for the government's plan to limit subsidized fuel purchases. He noted that restrictions were already in place with the introduction of the MyPertamina application. However, he emphasized the need for proper regulations to support these measures.

“For the next restrictions, I hope they will be implemented through a revision of Presidential Regulation No. 191 of 2024,” said Eddy. Presidential Regulation No. 191 of 2024 governs the provision, distribution, and retail selling price of fuel.

RIRI RAHAYU

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