Not Only Fuel, Erick Thohir Asks For Elpiji Purchases To Be Restricted

SOE Minister Erick Thohir. (Photo: Mery Handayani/VOI)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir supports the regulation of the purchase of subsidized fuel oil (BBM) through the revision of Presidential Regulation (Perpres) Number 191 of 2014.

Not only fuel, Erick assessed, the purchase of subsidized liquefied petroleum gas or LPG also needs to be limited.

Erick assessed that the purchase of LPG needs to be limited so that the distribution can be more targeted. Moreover, he said, currently imports of LPG are still very high.

"Not only for fuel, but we hope to also make gas, because LPG imports are very high now. And this is what we have to fix, don't let the subsidies get the wrong target," he said when met by the Kota Tua area, Jakarta, Wednesday, July 10.

In addition to limiting subsidized fuel, said Erick, the government is encouraging the development of bioethenol through Presidential Decree Number 40 of 2023.

Furthermore, Erick said, this bioethenol can be used to meet domestic needs as a substitute for fossil-based fuel.

This bioethenol is so that this nature-based can be a solution. Because in the future, Indonesia's policy does not want to import too much crude oil, but with 50 percent of its EV market, and 50 percent of the combustion engine or car that we know, but there is more friendly use of fuel, especially since we have sugar, we have palm oil, that's something good," he said.

Therefore, Erick said, the Ministry of SOEs supports the government's long-term plan to regulate the purchase of subsidized fuel to the use of bioethenol as environmentally friendly fuel.

"We from SOEs strongly encourage the government's long-term plans from all ministries, whether Presidential Regulation 191, 40, and others, so that we can be more efficient, on target, and the rest of these funds can be used for other programs that can also help our human development," he explained.