Coordinating Minister Luhut Says Fuel Subsidy Is Rp. 19.2 Million For Each Car, Rp. 3.7 Million For Motorbikes Per Year

Coordinating Minister for Maritime Affairs and Investment Luhut Bisar Pandjaitan. (Photo: ANTARA)

JAKARTA - Coordinating Minister for Maritime Affairs and Investment Luhut Bisar Pandjaitan said the current fuel subsidy budget (BBM) is increasing, in line with the increase in oil prices.

Luhut gave an example, with the current fuel price, the government has to spend Rp 19.2 million per year for a one-car subsidy.

"According to our records, with the current fuel price, passenger car subsidies are estimated to reach Rp. 19.2 million (per) car per year," he said at the launch of GrabElectric at the Office of the Coordinating Ministry for Maritime Affairs and Investment, Tuesday, July 12.

As for motorcycles, said Luhut, the government issued a subsidy budget of IDR 3.7 million per motorcycle per year.

"So you imagine if we now have 136 million motorcycles (units) of motorcycles, just calculate how much the subsidy will be," he said.

Currently, Luhut continued, the government has begun to recalculate what can be reduced in the burden of fuel consumption. This is so that the distribution of subsidized fuel is right on target.

"We calculate everything we can reduce, it's currently in progress. I'm sure we can do that," he said.

Therefore, he continued, the government began to encourage the use of electric vehicles. The goal is to reduce dependence on fossil fuels.

"We have now been asked by the president to calculate everything that we can reduce from the use of gasoline we use to use electricity," explained Luhut.