Deputy MPR Chairman: Energy Crisis Becomes Opportunity to Reform Fuel and LPG Subsidies

Jakarta (ANTARA) - Deputy Chairman of the MPR RI Eddy Soeparno believes the energy crisis presents an opportunity to reform policies on subsidies for fuel (BBM) and LPG to ensure they are targeted appropriately and reduce the burden on the state budget (APBN).

“The surge in global oil prices will impact the increased burden of energy subsidies and narrow the country’s fiscal space. Therefore, we need to act swiftly to reform energy subsidies so they are targeted at those who truly need them,” said Eddy in a statement received in Jakarta on Thursday.

According to Eddy, reforming energy subsidies is a critical priority that cannot be delayed any longer.

He considers it essential to prepare a long-term energy policy design.

“Reforming energy subsidies is the way to provide justice for the most needy in society and to minimise the potential for misdirected subsidies when they are instead received by those who can afford it,” he stated.

Eddy conveyed that from the outset, he has continuously advocated for energy subsidy reforms as a solution to reduce the APBN burden.

Moreover, various data indicate that the majority of users of subsidised Pertalite, diesel, and LPG are from affluent segments of society who are not entitled to them.

“Arranging energy subsidy policies must be directed towards strengthening national energy resilience. I have stated on various occasions that energy resilience is not just about the availability and reliability of supply, but also about the state’s effectiveness in managing energy resources in a fair, efficient, and sustainable manner,” he said.

This Doctor of Political Science from UI reiterated the importance of redirecting budgets from misdirected subsidies to more productive sectors, including the development of new renewable energy.

He believes this step is not only crucial for maintaining fiscal sustainability but also for ensuring Indonesia has a more independent energy foundation in the future.

“Energy subsidies must be an instrument that is appropriately targeted and can be redirected for the development of renewable energy to guarantee national energy reliability going forward. This is in line with President Prabowo’s vision to achieve energy resilience,” Eddy remarked.