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JAKARTA - The Ministry of Finance (Kemenkeu) is said to be preparing a new scheme for the distribution of subsidized 3 kilograms (Kg) LPG so that it can be more targeted to the targeted community groups.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said that this effort is part of the fuel and LPG subsidy policy in 2023.

"Transformation of the 3 kg LPG subsidy so that it is more targeted and based on recipient targets and is integrated with the social protection program (Perlinsos)," he said while attending a working meeting with the DPR Banggar at the Senayan Parliament Complex, Jakarta, Tuesday, June 14.

According to Febrio, this strategy also improves the current method, namely the distribution of 3 kg LPG is carried out openly so that everyone can access the subsidized goods.

"This is a challenge that we must face in the future because after 2022 we have agreed for the State Budget to act as a shock absorber. But remember, we must ensure that supervision of groups or sectors that are entitled to take advantage of this continues to be carried out," he said.

For your information, in the government's latest projection, the value of energy subsidies (BBM, electricity, and LPG) throughout this year will increase to IDR 443.5 trillion or around 2.5 percent of GDP in line with rising world commodity prices.

This figure has increased significantly from the provisions of the 2022 State Budget Law which allocates an energy subsidy budget of IDR 233.4 trillion.


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