Indonesian Political, Business & Finance News

DEN states that restricting subsidised fuel could save up to 15 percent in volume

| Source: ANTARA_ID Translated from Indonesian | Energy
DEN states that restricting subsidised fuel could save up to 15 percent in volume
Image: ANTARA_ID

Jakarta (ANTARA) - The National Energy Council states that restricting subsidised fuels such as Pertalite and Biosolar could save 10–15 percent of the total volume.

“If (the restriction) is based on CC and vehicle type, our calculations show a potential saving of 10–15 percent of the volume,” said DEN member Satya Widya Yudha during the Energy Discussion Forum monitored from Jakarta on Tuesday.

Satya explained that the calculation for restricting subsidised fuels is one of the government’s strategies for controlling subsidies and energy efficiency. The name of this strategy is the trilogy of subsidy control and energy efficiency.

Furthermore, Satya outlined other energy subsidy saving strategies, including transforming the 3kg LPG subsidy into one based on data from P3KE (Targeting for Accelerating the Eradication of Extreme Poverty) and DTKS (Integrated Social Welfare Data).

“The 3kg LPG is being transformed into a person-based subsidy using data from P3KE and DTKS,” said Satya.

In addition to saving energy subsidies through policy adjustments, Satya mentioned that another strategy in the trilogy is efficiency on the consumption side and accelerating electrification.

According to Satya, accelerating transport electrification can contribute to reducing fuel consumption.

“The third strategy is optimisation on the supply side,” said Satya.

This supply optimisation includes maximising the use of DMO (Domestic Market Obligation) for coal and gas, up to utilising palm oil for the B50 biodiesel programme.

Currently, the government plans to implement mandatory B50 starting from 1 July 2026.

“We will reduce diesel imports. So, Mr Minister of Energy and Mineral Resources (Bahlil Lahadalia) has said several times that we will reach zero (imports) for diesel if we increase B50,” said Satya.

Overall, he continued, these steps are key to maintaining a balance between energy security and fiscal stability amid global dynamics.

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