Gov’t Reviews LPG Subsidy

3-kilogram canisters of LPG

The Government’s plan to re-regulate the distribution of 3-kilogram liquefied petroleum gas (LPG) subsidies from open scheme to closed scheme under certain conditions is still under review, Minister of Energy and Mineral Resources Arifin Tasrif has said.

“What is circulating in the media is not entirely true. We are currently discussing it,”  Arifin said in Jakarta, Friday (17/1).

According to Arifin, the deliberation on the rearrangement of the 3- kilogram LPG subsidy will also involve relevant agencies.

“This deliberation involves ministries and institutions by taking into account the conditions of small communities and entrepreneurs,” said Arifin, adding that closed 3-kilogram LPG subsidy arrangement is being reviewed with the aim that subsidies provided by the Government are well-targeted.

The Government, continued Arifin, will also list those who really need the subsidies.

“Closed subsidies mean that we first identify those entitled to receive them, while the registration and identification aim to prevent ‘leakage’,” said Arifin.

Arifin reiterated that the Government is also committed to providing equal access to energy to all levels of society that disadvantages no one.

“We aim to provide energy for all levels of society by taking into account the ability of the community,” Arifin said, adding that the Government continues to slash the number of energy subsidies to meet the expected target and to be used for more productive sectors.

For the record, the total amount of energy subsidies in 2019 was recorded at Rp135 trillion, with Rp85.7 trillion allocated for fuel/LPG subsidies.

The amount of subsidy in 2019 was lower than that of in 2018, which amounted to Rp153.5 trillion, with Rp97 trillion for fuel/LPG. (Ministry of Energy and Mineral Resources’ Bureau of Communication, Public Information Services, and Cooperation/EN)

Translated by: Muhardi

Reviewed by: M. Ersan Pamungkas