Bahlil Ensures Fuel Subsidies Will Not Be Removed, But …

The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, emphasized that energy subsidies, especially for fuel oil (BBM) and similar products, will not be revoked. Bahlil stressed that the subsidy scheme for BBM and similar products is planned to use a blending scheme or a combination of direct subsidies to the community through BLT and subsidies to the goods or commodities themselves.
So, the issue I want to convey to my friends is that the subsidy (for fuel and such) will not be removed. Everything will still have subsidies. However, all this time we know, as I have mentioned several days ago, that these subsidies are suspected to be partially misdirected,” he said when met at his residence in South Jakarta, Wednesday (27/11/2024).
Furthermore, Bahlil mentioned that his team has reported the results of their study regarding the subsidy scheme that has been under review to President Prabowo Subianto. He said that the most likely policy to be adopted is using the BBM subsidy blending scheme, the details of which will be announced in the future.

“Then, later, God willing, the President will announce with us, so the scheme is most likely blending. Blending between there being commodity subsidies and part of the BLT subsidy,” he added.

Bahlil explained the plan for the fuel subsidy scheme with a blend of cash transfers and commodity subsidies, aimed at maintaining the purchasing power of the people.

“This is part of the strategy so that our brothers and sisters, when the subsidy shifts occur, the subsidy is not removed.” This is just a shift. The numbers, the volumes, everything is the same. So what? There is justice. This is in line with President Prabowo’s desire to ensure that those who are entitled to receive it are the deserving members of society,” he added.

In the near future, Bahlil said, his team will soon coordinate with the Minister of Finance to immediately implement the BLT subsidy scheme for the public.

This, Bahlil continued, serves as a cushion for the public to maintain their purchasing power during the transitional period of the shifting subsidy policy.

“We want, after this I will report to the Minister of Finance, for the initial phase we might push for a cushion first.” “BLT will be prioritized first,” he said.
Meanwhile, Bahlil explained the subsidy scheme that will be allocated to products such as Pertalite or Solar Subsidy, which will later only be available for purchase by yellow plate vehicles or public transportation.

“I’ll give you a hint, one of them, don’t ask for details yet, we’ll explain the details on the right day and date.” One of them is that those entitled to receive subsidies are vehicles with yellow license plates, such as minibuses and public transportation,” he revealed.

He believes that vehicles with black plates or private vehicles are not entitled to receive subsidized fuel.

“Because we want to give this to those who are entitled.” It’s not right if the black plate turns out to be managed not for public transportation, but for mining transport, or palm oil transport, or factory goods transport. “How can they be given diesel to use, or subsidized oil,” he emphasized.

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