Government Needs To Implement Closed Fuel Subsidy, Observer: Take Advantage Of Existing Subsidy Program Data

JAKARTA - The government continues to seek better subsidy schemes for the community. One of them is targeted subsidies. For example, only certain people may receive fuel subsidies.

Member of the National Energy Council (DEN), Satya Widya Yudhaya, said that so far the subsidies provided have not been well targeted due to lack of supervision so that people from all walks of life are free to use subsidized fuel.

"People are not limited to buying Pertamax and Pertalite, subsidized diesel is not well monitored," he said in Energy Corner, Monday, April 11.

For this reason, he proposed the government to immediately impose a closed subsidy on pertalite and subsidized diesel fuel. However, he continued, this scheme is constrained by digital data which the government claims is incomplete and it is difficult to classify people into certain groups such as very poor, poor, close to poor and rich.

"If it has been properly identified and the subsidy pattern is targeted, it will greatly assist the government in providing compensation," said Satya.

Meanwhile, the Executive Director of the Reforminer Institute, Komaidi Notonegoro assessed that the government should immediately implement closed distribution by utilizing the existing data. According to him, the government can start by using data on the Family Hope Program (PKH) or other subsidy programs such as data on fertilizer subsidies and electricity subsidies.

"Actually, we have suggested to the government to try starting with existing databases such as PKH, subsidy recipients and electricity," said Komaidi.

He added that the government could improve the existing data while running a closed subsidy scheme.

"If you wait until it's perfect, it's a bit difficult to run this program because there will be debates. So it must be started and perfected while this program is running," continued Komaidi.

He also suggested that this program be carried out by loading the identity cards of the subsidy recipients in order to make it easier for people to fill up with fuel and also make it easier for Pertamina to identify and distribute subsidized fuel.

"Like going to a supermarket, residents who get a member card will get a discount, but what is listed at the gas station remains the highest retail price," he said.

Thus, he continued, this will prevent parties who will commit fraud. Because according to him, currently there are many frauds where there are parties who modify the truck tanks.

Previously, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif highlighted the fraudulent practice of modifying vehicle tank capacity which played a major role in the occurrence of diesel fuel shortages during field inspections.

"It must be seen that the vehicles that consume fuel are correct or not, many examples of 6-wheeled trucks should have a 120 liter tank, modified the tank to 400 liters, this is not true. Moreover, the amount taken is not used for its designation, so there are many stalls outside Unofficial gas stations," said Arifin.