Four Indef Recommendations Related To The Fuel Restriction Scheme

JAKARTA - The Institute for Development of Economics and Finance (Indef) provides four recommendations for the fuel oil restriction scheme (BBM) in the context of fuel subsidy reformulation.

Indef researcher Imaduddin Abdullah said the fuel restriction scheme aims to minimize the risk of misuse of fuel subsidies, especially the Assignment Special Type of Fuel (JBKP) or Pertalite.

"If converted, the total abuse of all types of fuel is equivalent to Rp. 11.65 billion. This means that the value is very large. So, it is important for us to think about how we can improve the fuel policy," said Imaduddin in a virtual discussion. Indef, quoted from Antara, Tuesday, March 28.

The four recommendations are divided based on a negative or negative list scheme. Groups included in the negative list are prohibited from using subsidized fuel.

The first scheme, a negative list includes all black plate cars, all official cars, and motors above 150 cc.

With this scheme, Indef projects fiscal savings to reach IDR 5.78 trillion if implemented after Eid or IDR 2.89 trillion if implemented in September 2023.

Then, the second scheme is a negative list of all black plate cars and all official cars, but excluding the above 150 cc.

Fiscal savings in the second scheme are not as big as the first scheme, which is IDR 5.43 trillion if applied after Eid and IDR 2.71 trillion if implemented in September. However, according to Imaduddin, this scheme does not pay for monitoring uniform policies for all types of cars and motorbikes.

The third scheme applies a quota system for black plate cars, but still includes all official cars and motorbikes above 150 cc.

However, the third scheme has weaknesses. According to Imaduddin, the scheme can prevent excessive consumption. However, due to its quota-based system, this scheme is prone to misappropriation.

The last scheme is to determine a negative list based on capacity. So, the car included in the negative list on this scheme is a black plate car above 1,400 cc. All official cars and motorbikes above 150 cc remain on this list.

"Opsi four has an aspect of justice because only large cc cars enter the negative list. However, the potential for savings is smaller and the cost of supervision is potentially high," said Imaduddin.