Ahead of Non-Subsidised Fuel Price Changes, MPR Deputy Chairman Issues Warning

Jakarta, CNBC Indonesia - Ahead of the announcement of non-subsidised fuel prices expected tomorrow, Deputy Chairman of the People’s Consultative Assembly from the National Mandate Party faction, Eddy Soeparno, has called on the government to anticipate the migration of non-subsidised fuel users to Pertalite, which is a subsidised fuel. For Eddy, uncontrolled migration to subsidised fuel would only burden the state budget further due to the potential for misdirected energy subsidies. “This is the moment to reform subsidies to only those in need and ensure that government assistance reaches those who deserve it. Therefore, comprehensive anticipation is needed so that price disparities do not cause migration to subsidised fuel,” said Eddy, as quoted in a press release on Tuesday (31/3/2026). This PAN deputy chairman stressed the importance of strengthening the monitoring and distribution system for subsidised fuel to ensure it is targeted properly. On various previous occasions, Eddy has reminded that energy subsidy policies must continue to be improved so they are not enjoyed by groups that do not qualify. “Justice in energy distribution is key. Subsidies must truly target the poor and needy society and not be enjoyed by groups that do not qualify,” said Eddy. The Doctor of Political Science from the University of Indonesia also views the need to evaluate the subsidy mechanism from product subsidies to direct subsidies to recipients. He recounted his experience as chairman of the Energy Commission in the DPR in a previous period, where simulations were conducted for providing fuel and 3 kg LPG subsidies directly to subsidy recipients based on more accurate data. “If this proposal is continued, we can significantly save on energy subsidies and compensation, as there will no longer be subsidised fuel and 3 kg LPG prices in the market. Subsidy recipient communities will receive direct cash funds to purchase fuel and LPG based on market prices,” said Eddy. Eddy also reminded that every step in energy policy reform must still consider aspects of fiscal resilience and people’s purchasing power. “Given our limited fiscal space, ‘right sizing’ and ‘right targeting’ of subsidies is a necessity. Thus, future energy policies will have a balance between fiscal sustainability and social protection,” stated the Member of Commission XII of the DPR.