Jakarta (ANTARA) - The House of Representatives Budget Agency\n(Banggar DPR) of the Republic of Indonesia has called for the immediate\nstart of energy subsidy policy reforms amid the Gulf War situation.<\/p>\n
Banggar DPR RI Chairman Said Abdullah stated that Indonesia needs to\nimplement reforms promptly, as no one knows exactly when the armed\nconflict between Iran and the United States and Israel will end.<\/p>\n
\u201cIf we can take reform steps earlier, in the future the government\nwill have more fiscal room to face an oil shock,\u201d Said said in a\nstatement received in Jakarta on Wednesday.<\/p>\n
He said that LPG subsidies should be directed to the 40 percent of\nthe population with low incomes or the bottom six deciles. Generally,\nthey work as micro-businesses, small fishermen, and agricultural\nlabourers or small farmers.<\/p>\n
According to Said, the programme for the 40 percent of low-income\nhouseholds could be implemented with several technical options, namely\naccurate data and beneficiaries using biometrics.<\/p>\n
Said said that the Indian government has implemented the Aadhaar\nsystem containing biometric identity numbers directly linked to the\nsubsidy recipients\u2019 bank accounts.<\/p>\n
Said opined that the advantage of this system is that it is difficult\nto manipulate because subsidies are not given in cash, but the LPG\nsubsidy assistance is channelled through the recipient\u2019s account and can\nonly be used for transactions to buy LPG via biometrics.<\/p>\n
\u201cIn India, with its larger population, this programme can run. It\nshould be possible to implement in Indonesia as well,\u201d he said.<\/p>\n
Said opined that as a consequence of the closed LPG subsidy policy,\nsales of 3-kilogram LPG in the market can be adjusted to economic or\nmarket prices, not subsidy prices, so the subsidy burden will\ndecrease.<\/p>\n
Meanwhile, for diesel and Pertalite subsidies, he said, barcode data\nentry through the MyPertamina application must be revalidated.<\/p>\n
PT Pertamina (Persero) must adjust data between diesel and Pertalite\nsubsidy users and motor vehicle ownership data (STNK) at the police.<\/p>\n
In this way, the focus of fuel oil (BBM) subsidies is prioritised for\nsmall fishing boats, agricultural equipment for small farmers, to\nmotorcycles for MSME actors, so four-wheeled vehicles must be prohibited\nfrom using subsidised diesel and Pertalite.<\/p>\n
On the other hand, the Banggar Chairman reminded that electricity\nsubsidy beneficiaries also need to be revalidated by PT PLN\n(Persero).<\/p>\n
He said that PLN can integrate data from the National Socio-Economic\nSurvey (Susenas), so that deciles of more prosperous communities can be\nupgraded and asked to exit from using 900 Volt Ampere capacity or\nbelow.<\/p>\n
\u201cConversely, those whose deciles drop, entering poor households, can\nenjoy 900 VA capacity or below,\u201d Said said.<\/p>\n
In line with that step, he continued, PLN can gradually develop an\nelectric stove programme for poor households, so poor households have\ntwo options, namely using subsidised LPG or electric stoves.<\/p>\n
In that way, he said, PLN can reduce electricity compensation costs\nfor people in deciles 7-10, namely household groups in the top 30 to 40\npercent or more prosperous.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/dpr-budget-committee-begin-energy-subsidy-reforms-amid-gulf-war-1775649157", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }