President Prabowo Subianto Orders Reform on LPG Subsidy

Minister of Energy and Mineral Resources Bahlil Lahadalia delivers a press statement on Tuesday in Jakarta (02/04). (Photo by: BPMI)

President Prabowo Subianto has instructed the Minister of Energy and Mineral Resources Bahlil Lahadalia to reform the LPG subsidy so that it is more well-targeted and no longer misused by certain quarters.

Bahlil said that reforming the LPG subsidy has become a major concern for the Government since the current policy has been in place for more than twenty years without significant changes. He emphasized that the LPG subsidy, which reaches Rp87 trillion per year, must be enjoyed by the people entitled to it.

“It is hoped that the public can get the cheapest price possible. But in fact, people should buy it at around Rp 25,000 per tube. Some even mix it. This is a waste,” Bahlil said to the media.

President Prabowo Subianto also underlined that the arrangement of subsidies must be made to avoid wasteful spending and leaks in the distribution process. As a solution, Bahlil added, the Government has changed the LPG distribution system at the retail level by raising its status to sub-bases, making it easier to monitor.

“By changing them to sub-base sellers, the Government will provide facilities as the same as in the central base so that we can control them using IT. That’s the point,” Bahlil explained.

Regarding criticism that dissemination of the new policy was not optimal, Bahlil said that the Government continues to provide assistance to the business actors, while ensuring that there will be no additional costs for the sub-base sellers.

“I’m aware that this is a new thing and needs adjustments. Later, we will definitely provide assistance based on the development in the future. This new arrangement is important to make as a form of our love to the people so that the state money used for subsidy is truly on target,” Bahlil said.

President Prabowo Subianto also instructed that the new system should not disrupt people’s access to LPG. Through this LPG distribution reform, the Government is targeting budget efficiency and ensuring that subsidies are truly enjoyed by the people in need.

“Our duty based on orders of the President is, first, to ensure that the entire subsidies are right on target. Second, the governance must be good as well. Third, the people can meet their basic needs, particularly regarding LPG. It must be available,” Bahlil remarked. (BPMI/DNS) (EST/MUR)