Coordinating Minister Luhut Signals To Tighten Subsidized Fuel Recipients Starting August 17

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan revealed that the government is targeting to tighten the use of fuel oil subsidies (BBM) on August 17, 2024.

That way, said Luhut, the amount of fuel subsidy distribution is more targeted.

Giving inappropriate subsidies (targets). That's now Pertamina has prepared. We hope that on August 17, we can start, where people who are not entitled to subsidies will be able to reduce them. We will count there," said Luhut through his official Instagram @luhut.panjaitan quoted Wednesday, July 10.

In addition to tightening subsidized recipients, Luhut said, the government plans to encourage alternative replacements for gasoline through bioethenol.

He considered that this step could reduce fuel imports and reduce air pollution.

Moreover, he continued, the sulfur level owned by this alternative fuel is also relatively low.

By reducing sulfur levels, he said, the number of ISPA sufferers could be suppressed and BPJS payments for the disease could save the state budget.

"We are now planning to encourage bioethenol to enter to replace gasoline so that this air pollution can also be reduced quickly because sulfur is almost 500 ppm, right," he said.

Luhut added that this plan is being worked on together with PT Pertamina (Persero).

"Well, this is now being processed by Pertamina. If all this goes well, from there I think we can save more," concluded Luhut.