JK Proposes Government Reduce Fuel Subsidies
Former Vice President Jusuf Kalla, or JK, has proposed that the government consider reducing subsidies on fuel oil (BBM) amid the potential energy crisis resulting from the war in West Asia. According to Kalla, reducing subsidies could be a strategy to curb the budget deficit.
Kalla stated that this policy is commonly implemented in other countries, even though it leads to an increase in fuel prices. “We request that consideration be given to reducing the deficit and debt by cutting subsidies,” Kalla said at his home on Jalan Brawijaya, Kebayoran Baru, on Sunday, 5 April 2026.
This 10th and 12th Vice President assessed that fuel prices that are too cheap due to heavy subsidies, as they are now, actually encourage the public to consume energy excessively. This hampers conservation efforts.
“Indeed, some say don’t raise it. Yes, that’s true, not raising it might seem good temporarily. But debt will pile up with large subsidies. That’s the most dangerous for all of us. If there’s debt, we all suffer,” said Kalla.
Kalla did not deny that reducing subsidies and raising fuel prices would spark public protests. However, according to Kalla, the policy is necessary to curb the state’s 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.
“My experience over 20 years shows that if explained well to the people, they will accept it. In 2005 and 2014, there were no demonstrations because we explained it well,” Kalla remarked.
On the other hand, the largest fuel consumption, according to Kalla, comes from relatively affluent groups who use private vehicles. “So if it rises by 20-30 percent, for them it’s no big deal. For motorbikes, it can be managed,” said Kalla.
Furthermore, Kalla also touched on the work-from-home (WFH) policy as an energy-saving measure. For Kalla, that regulation is not entirely effective if there is no change in people’s movement patterns.
Civil servants or private employees working from home might get bored and then leave the house using private cars or motorbikes. The conservation goal would not be achieved.
Kalla assessed that conservation efforts would be more effective if fuel use restrictions are paired with increased use of public transport.
“If (fuel prices) rise, those using motorbikes will definitely cut back, stay home, or perhaps take public transport—various options. That’s more effective than everyone staying home but still going out,” said Kalla.