The Government Ensures That 3 Kg Elpiji Subsidy Continues, Electricity And Fuel Are Still Being Considered

Illustration (Photo: Doc Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia conveyed that the results of the coordination meeting on energy subsidies were right on target with the relevant Ministries/Institutions.

Bahlil explained that the meeting decided to maintain a 3 kilogram (kg) LPG subsidy.

Meanwhile, other energy subsidies still have to be further explored.

"We have decided to collect LPG. For LPG, we will propose to the President not to do any corrections. This means that LPG still applies as it is today," said Bahlil, Monday, November 4.

Bahlil reasoned that the 3 kg LPG subsidy was maintained because it was still widely used by poor households and MSMEs.

Regarding electricity and fuel oil (BBM) subsidies, Bahlil said that decision-making for both must go through careful consideration.

The decision also remains to consider a number of reports from related institutions and business entities such as PT Pertamina (Persero), the Upstream Oil and Gas Regulatory Agency (BPH Migas) and PT PLN (Persero).

"When it is finished, in the not long term, one week from now, there is the right formulation for us to report to the President," explained Bahlil.

One of the schemes considered by the government, said Bahlil, is the Direct Cash Assistance (BLT) scheme.

"The BLT is one of the options and will be decided later on the right day. And I think the option is more convex there," said Bahlil.