Purbaya discusses technology for targeted subsidised fuel distribution with Pertamina CEO
Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa revealed that discussions are under way on the use of technology to ensure that the distribution of subsidised fuel and 3-kilogram LPG is better targeted.
The discussions took place during a meeting with Pertamina President Director Simon Aloysius Mantiri at the Finance Ministry office.
“Primarily, I want to know what technology will be used to limit — not restrict, but to make sure the subsidy hits the right target,” said Purbaya when met at the Finance Ministry building in Jakarta on Friday.
Purbaya explained that he wants to ensure subsidised fuel is enjoyed by members of the public who are entitled to it, so that distribution volumes can be kept under control.
He noted that subsidised fuels such as Pertalite and 3kg LPG are still widely used by middle- to upper-income groups.
“Anyone can buy Pertalite or gas (3kg LPG), for instance, including the wealthy. They have the technology; I want to see what it is and how it would be applied,” said Purbaya.
When asked about the possibility of raising subsidised fuel prices in line with rising global crude oil prices, Purbaya made clear that no such discussion had taken place and confirmed that subsidised fuel prices would be maintained at current levels.
“No. What we are ensuring is that the subsidy is well targeted, so that volumes can be controlled. As for that, we will wait to see what Pertamina proposes, and I will review the other matters later,” said Purbaya.
Previously, the government had been preparing a new distribution scheme for subsidised fuel to improve targeting, one element of which includes restrictions on the purchase of subsidised Pertalite and Solar, or Biosolar.
Those restrictions would be based on vehicle type and engine capacity, measured in cubic centimetres (CC).
Alongside this, the Ministry of Energy and Mineral Resources is revising Presidential Regulation Number 191 of 2014 on the Supply, Distribution and Retail Selling Prices of Fuel.
In addition, the government is preparing to transform the 3kg LPG subsidy from a commodity-based scheme to a beneficiary-based one, with future distribution referring to data from the Targeting for the Acceleration of Extreme Poverty Eradication (P3KE) and the Integrated Social Welfare Data (DTKS).