Bahlil Concerning Fuel-Electric Subsidy Leaks: The Figure Reaches IDR 100 Trillion

Minister of Energy and Mineral Resources Bahlil Lahadalia. (Photo: Maria Trisnawati/VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed, as much as 30 percent of fuel oil (BBM) and electricity subsidies were not on target.

He said this subsidy leak amounted to Rp100 trillion.

"But to be honest, I said yes, approximately 20 to 30 percent of fuel and electricity subsidies have the potential to be not on target, and that's big, the figure is approximately Rp. 100 trillion," he said at a press conference for the Quick Win Program which was held at the Four Seasons Hotel. Jakarta, Sunday, November 3.

Bahlil said that the subsidy leak got based on reports from state-owned companies that were assigned, namely Pertamina and PLN. Including BPH Migas.

"We know that our subsidy is now Rp435 trillion in 2024, it consists of compensation and subsidies. Of the Rp435 trillion for LPG Rp83 trillion. So we consider, from various reports that came in, both PLN and Pertamina, as well as BPH Migas, from fuel and electricity subsidies, it saw that there was potential that was not on target," he said.

As a result of the subsidy leak, continued Bahlil, the poor who should have received it did not fully enjoy it.

"Subsidy is what should be for the poor, our brothers and sisters who have not had a good economy, then are accepted by our brothers and sisters whose economy is good," he said.

Bahlil said that he would soon hold a meeting to discuss the subsidies on target.

He did not deny that one of the formulations discussed was indeed regarding the distribution of subsidies through Direct Cash Assistance (BLT) to the community.

However, Bahlil continued, other options were mixed, such as the distribution of fuel subsidies by BLT or as usual, which had been running.

"So we're just waiting, the President will give us 2 weeks, so we will finish this 2 weeks," he said.