DPR Budget Committee Chairman Rejects JK's Proposal to Cut Fuel Subsidies: Why Tamper with Aid for the Poor?
Jakarta – The Chairman of the House of Representatives’ Budget Agency (Banggar) DPR RI, Said Abdullah, has rejected the proposal to reduce fuel oil (BBM) subsidies to safeguard the State Revenue and Expenditure Budget (APBN) amid global conflicts.
Said made this statement in response to suggestions from the 10th and 12th Vice President of Indonesia, Jusuf Kalla (JK), who urged the government to evaluate BBM subsidies.
“If BBM subsidies are reduced, we do not agree,” Said told reporters at the Parliamentary Complex in Senayan, Central Jakarta, on Monday, 6 April 2026.
Rather than cutting BBM subsidies, Said believes the government should focus on transforming the subsidy scheme to make it more targeted. One example, he said, is the 3-kilogramme (kg) LPG subsidy.
“What is needed is for the 3kg LPG subsidy to be targeted. The way to do it is not just for the government to have SEN data, but also to repeatedly use fingerprint or eye retina identification for those entitled to the 3kg LPG cylinder,” he said.
“Because according to our calculations, out of 8.6 million, if it is targeted and not wasted, the 3kg LPG cylinder budget would only require 5.4 million from the existing allocation,” he added.
This PDIP politician then questioned why subsidies for the poor are often scrutinised when global oil prices surge.
“If it’s about the burden from rising international energy oil prices, what isn’t burdened? Why do we tamper with subsidies? Why don’t we talk about non-subsidised prices that haven’t risen yet? Why tamper with those for the poor? Don’t do that. If we must tamper, it’s the ones sold in the market at economic prices. That makes more sense,” Said concluded.
For context, the 10th and 12th Vice President of Indonesia, Jusuf Kalla (JK), previously called on the government to evaluate and reduce the burden of energy subsidies, including BBM, amid global conflicts.
JK stated that subsidy reductions have been implemented by many countries to address potential crises.
“We request that consideration be given to reducing the deficit and debt by cutting subsidies. Because reducing subsidies means raising prices,” JK said on Sunday, 5 April 2026.