Purbaya: Fuel Restrictions Aim to Ensure Targeted Subsidies
Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa has stated that the policy restricting purchases of subsidised fuel, particularly Pertalite, is aimed at ensuring subsidies are distributed accurately to their intended targets.
Specifically, he said, the policy responds to input from the House of Representatives (DPR), which has highlighted the reality that subsidised fuel distribution is still experiencing leakage.
“The first thing to clarify is that prices are not going up. It is just that, when I was at the DPR, I was instructed to ensure the subsidies are better targeted,” Purbaya said when confirmed by journalists at the Ministry of Finance office in Jakarta on Wednesday.
Purbaya said the policy will be implemented gradually. The government will also monitor its impact on the economy as a form of policy evaluation.
“We will do it gradually to see what the impact is like. If, for example, I stop the 10th decile from being allowed to buy Pertalite, what will the impact be on the economy? So, we will proceed in stages,” he said.
The restrictions target people in the 9th and 10th deciles. Purbaya previously explained that people in those groups will be directed to buy non-subsidised fuel.
Control of fuel subsidies is still under discussion and is expected to be implemented not long after all systems are ready.
Moreover, Purbaya said, world oil prices are still volatile, so appropriate steps need to be taken to ensure the state budget (APBN) remains secure until the end of the year.
The policy was announced following a visit by Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia to the Ministry of Finance office on Tuesday (11/8).
Bahlil said that subsidies for oil and gas products have not been fully on target so far, and that even people who are well-off have been receiving subsidised fuel.
For that reason, Bahlil met with Purbaya to seek a system for distributing fuel and gas products that is accurately targeted, because hundreds of trillions of rupiah have been allocated for energy subsidies.