Commission XII Of The House Of Representatives Denies Luhut About Discourse On The Elimination Of Subsidized Fuel Starting In 2027

ILLUSTRATION BETWEEN

JAKARTA - Deputy Chairman of Commission XII of the House of Representatives Bambang Haryadi denied any discourse on the elimination of fuel oil or subsidized fuel in 2027 as revealed by the Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan.

Bambang emphasized that the abolition of subsidies must be approved by the DPR.

"There is no discourse on eliminating subsidies. And the mechanism related to subsidies must be approved by the DPR RI. Because the subsidy is attached to the APBN," said Bambang in his statement, Friday, February 21.

On the other hand, said Bambang, President Prabowo Subianto actually instructed him to suppress price increases for the benefit of the small people.

"President Prabowo even emphasized protecting the needs of small communities," continued the Gerindra legislator.

Bambang actually considered that Luhut's statement was not a matter of eliminating subsidies, but an improvement to the scheme.

"Perhaps Mr. Luhut's suggestion, not to abolish subsidies, but to improve the scheme so that subsidies are right on target. Even in the 2023 Commission VII Working Meeting, the Minister of Energy and Mineral Resources Arifin Tasrif agreed to use subsidized fuel related to pertalite only for motorbikes and public transportation. And diesel is only intended for public transportation and basic food transportation," he explained.

Bambang said President Prabowo wanted the fuel subsidy to be right on target. Therefore, he said, the distribution of subsidized fuel must be addressed.

"The president wants the subsidies to be right on target, and to the small communities who are entitled. We admit that there are still people who are not on target, but in the future we will fix them so that they are right on target," he said.

"Mr. President aspires to 'wong cilik podo gemuyu', so we are sure that the President will always stand ahead to protect the little people," added Bambang.

Previously, the Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan gave a signal to remove subsidized fuel oil (BBM). Starting in 2027, the government will implement One Price Fuel.

"I think and convey to the President that in the next two years, we may be able to reach a single price, without subsidies for fuel," Luhut said at the "Economic Outlook 2025" event at The Energy Building, Jakarta, Thursday, February 20.

"There is no more subsidies to materials, such as fuel (BBM) and diesel," he added.

In exchange for the no subsidized fuel, Luhut said that the distribution of fuel subsidies would later be given directly to the recipients. There is no more subsidies for fuel that have been attached when people buy pertalite and biosolar.

Luhut claimed that the progress of removing subsidized fuel was ongoing. He believes that the presence of technology, especially artificial intelligence (AI) can make it easier for PT Pertamina (Persero) to record subsidized recipients.

"Subsidies (in the future) are given to eligible people. I think it's best so we can save billions of dollars," Luhut claims.

"AI is very beautiful. So, Pertamina will be able to identify whether this car, this (plate) number, meets the requirements to receive this type of fuel. (Vehicles) meet the requirements, which are not, that kind of thing. I think it will work," he continued.