Eddy Soeparno: Energy Crisis a Momentum to Reform Subsidies for Targeted Distribution
REPUBLIKA.CO.ID, JAKARTA - Deputy Chairman of the MPR RI from the National Mandate Party (PAN) faction, Eddy Soeparno, agrees with the government’s plan to implement a Work From Home (WFH) policy for one day per week in response to the prolonged Iran-Israel-US war. In addition, Eddy stressed the importance of consistently preparing long-term energy policy designs.
According to Eddy Soeparno, WFH is one of the “quick actions” that can temporarily save fuel consumption. However, in the future, reforming energy subsidies is a crucial priority that must not be delayed any longer.
“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 hurry to reform energy subsidies so that they are targeted at those who truly need them.”
“Reforming energy subsidies is the way to provide justice for the most needy people in society and to minimise all potential for misdirected subsidies when subsidies are instead received by those who are capable,” he continued.
This PAN Deputy Chairman stated that from the beginning, he has continuously pushed for energy subsidy reforms as a solution to reduce the state budget burden. Moreover, various data show that the majority of users of subsidised Pertalite, solar, and LPG are from the affluent class who are not entitled.
“Arranging energy subsidy policies must be directed towards strengthening national energy resilience. I have stated on various occasions that energy resilience is not only 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 emphasised.
This UI Doctor of Political Science reiterated the importance of redirecting budgets from unt-targeted subsidies to more productive sectors, including the development of new renewable energy. He assessed that this step is not only important for maintaining fiscal sustainability but also to ensure that Indonesia has a more independent energy foundation in the future.
“Energy subsidies must be an instrument that is targeted and can very well be redirected to the development of renewable energy to guarantee the reliability of national energy in the future. This is in line with President Prabowo’s vision to realise energy resilience,” he concluded.