MPR calls for reform in energy subsidies to improve targeting
“The surge in global oil prices will increase the energy subsidy burden and tighten the nation’s fiscal space. Therefore, we must move quickly to reform energy subsidies so they accurately benefit those truly in need,” Soeparno said in a statement received in Jakarta on Thursday.
According to him, reforming energy subsidies must be prioritized. In this regard, he also emphasized the importance of preparing long-term energy policy designs.
“Reforming energy subsidies is a way to provide justice for those most in need and minimize any potential for misdirected subsidies,” he stated.
He asserted that he has consistently pushed for energy subsidy reform to reduce the burden on the state budget. Moreover, data show that the majority of those consuming subsidized gasoline, diesel, and LPG are individuals who are economically ineligible.
The MPR deputy speaker highlighted that reforming energy subsidy policies must be directed toward strengthening national energy security.
“Energy security is not just 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 said.
Furthermore, he reaffirmed the importance of reallocating misdirected subsidy budgets toward more productive sectors, including the development of renewable energy.
Soeparno believes this step is not only vital for maintaining fiscal sustainability but also for ensuring Indonesia has a more self-reliant energy foundation for the future.
“Energy subsidies must serve as a well-targeted instrument and should be reallocated toward the development of renewable energy to guarantee national energy reliability going forward,” he remarked.
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Translator: Putu Indah, Raka Adji