Energy Crisis as Momentum to Reform Subsidies for Targeted Distribution
Jakarta, CNBC Indonesia - Deputy Chairman of the People’s Consultative Assembly 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 a week in response to the prolonged Iran-Israel-US war. In addition, Eddy also highlighted the importance of consistently preparing long-term energy policy designs.
According to Eddy, WFH is one of the “quick actions” that can temporarily save fuel consumption. However, in the future, reforming energy subsidies is an important 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,” said Eddy as quoted in a press release on Thursday (26/3/2026).
“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.
The Deputy General Chairman of the PAN Central Executive Board 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 segment 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 supplies, but also about the state’s effectiveness in managing energy resources in a fair, efficient, and sustainable manner,” he emphasised.
The Doctor of Political Science from the University of Indonesia reiterated the importance of redirecting budgets from untarged 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 a targeted instrument and can very well be redirected for the development of renewable energy to guarantee future national energy reliability. This is in line with President Prabowo’s vision to realise energy resilience,” he said.