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Government Studies Card-use for Subsidy Distribution

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13 April 2017 19:16 WIB

An number of 3 kg LPG cylinder in Mampang, Jakrata (4/6), Tempo/Tony Hartawan

TEMPO.CO, Jakarta - The government plans to implement a card-system in distributing energy subsidy. People with the subsidy card will be entitled to receive subsidies for fuel and electricity.

The plan is currently being studied by the Energy and Mineral Resources Ministry.

Energy Minister Ignasius Jonan said he is in talks with state power company PLN about the matter, and plans to start implementing the scheme next year. 

Jonan said in Jakarta on Thursday that a card system is expected to ensure that the subsidies are given to the right people—those who cannot afford to pay for non-subsidized fuel and electricity. This is not just about reducing subsidy, according to Jonan, but about fair distribution.

This year's subsidy budget is expected to increase to Rp 30 trillion from the allocated Rp20 trillion. 

VINDRY FLORENTIN



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