Introductory Remarks of President of the Republic of Indonesia at the Limited Meeting on the Integration of Energy Subsidy Distribution into Family Welfare Card (KKS) Program, 13 January 2017, at Presidential Office, Jakarta

Unofficial English Translation

Bismillahirrahmanirrahim,

Assalamu’alaikum warrahmatullahi wabarakaatuh,

Good afternoon,

May peace be upon all of us,

We are going to discuss the integration of energy subsidy distribution into Family Welfare Card (KKS) program this afternoon. First of all, I would like to emphasise that the policy of energy subsidy for underprivileged people becomes the main focus of interest for the government.
In 2017, we are going to allocate Rp32.3 trillion for subsidies on fuel and 3-kilogram liquefied petroleum gas (LPG), and Rp45 trillion for electricity subsidy.  However, I want to underline the point that energy subsidies for the underprivileged people should be well targeted. It is only for the benefit of the underprivileged people.

All this time, for example,  the 900 VA electricity subsidy are not really received by underprivileged households. Therefore, we should gradually improve the accuracy of the target and ensure that the electricity subsidy is well targeted and really received by underprivileged households. Moreover, I have received the information that more than 65 percent of energy subsidy for 3-kilogram LPG are also received by the households who do not qualify for the subsidy.

Therefore, I demand that energy subsidy distribution to be integrated into poverty alleviation programs, particularly the ongoing KKS program. So, the subsidy distribution will be more oriented, well targeted, and received by underprivileged people, poverty-prone people, small businesses, micro businesses, all of which are qualified for the subsidies.

I think that is all of my introductory remarks. (PR Cabinet Secretariat) (VF/AW/YM/Naster)