DPR Budget Committee Chairman Rejects Proposal to Cut Fuel Subsidies
Chairman of the House of Representatives Budget Agency Said Abdullah has rejected the proposal to reduce fuel (BBM) subsidies as a cost-saving measure. The proposal was initially put forward by former Vice President Muhammad Jusuf Kalla, or JK.
“If fuel subsidies are reduced, we do not agree. What is needed now is to ensure that the 3kg LPG subsidy distribution is on target,” Said said at the DPR Complex in Jakarta on Monday, 6 April 2026.
The politician from the Indonesian Democratic Party of Struggle assessed that concerns over the fuel subsidy budget burdening the fiscal should not be addressed by cutting subsidy allocations for the poor. This is because the unchanged prices of non-subsidy fuel have never been discussed to date.
“Why don’t we talk about the non-subsidy fuel prices that haven’t risen until now? Why tamper with the poor, don’t do that,” Said said.
According to Said, it would be more reasonable for the government to adjust economic or non-subsidy fuel prices to reduce the fiscal burden. However, this must also consider its impact on future inflation.
He also encouraged the government to carefully calculate ways to address potential energy shortages. Said advised responding to the current geopolitical situation with a cool head to produce targeted policies.
“Don’t act like your beard is on fire just because oil prices rise, as if the sky will fall tomorrow,” Said stated.
Previously, Jusuf Kalla proposed that the government consider reducing fuel subsidies to curb the national budget deficit. Kalla’s proposal was a response to the government’s cost-saving policies due to the surge in global oil prices from the war between the United States and Israel against Iran since the end of February 2026 until now.
Kalla stated that reducing fuel subsidies is a common practice in other countries, even if it leads to price increases. This 10th and 12th Vice President believed that fuel prices that are too cheap due to subsidies, as they are now, actually encourage excessive energy consumption by the public. This hinders saving efforts.
“We request that reducing the deficit and debt be considered by reducing subsidies,” Kalla said at his home on Jalan Brawijaya, Kebayoran Baru, on Sunday, 5 April 2026.
Kalla did not deny that subsidy cuts and fuel price hikes would spark public protests. However, according to Kalla, such policies are necessary to curb the state budget deficit.
He emphasised that the government must provide good explanations so that the public can accept and understand the situation. Moreover, said Kalla, the policy is taken reluctantly due to external pressures.