TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Prabowo instructs ministers to prepare reform of energy subsidy scheme

Prabowo has set a two-week deadline to finalize the new scheme and has tasked Statistics Indonesia (BPS) with leading the data preparation, with additional support from other ministries.

Aditya Hadi (The Jakarta Post)
Premium
Jakarta
Thu, October 31, 2024

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Prabowo instructs ministers to prepare reform of energy subsidy scheme An attendant fills up a motorcycle with gasoline at a gas station owned by state-owned oil and gas company Pertamina in Jakarta. (JP/Dhoni Setiawan)

P

resident Prabowo Subianto has asked his aides to prepare implementation of a better energy subsidy scheme that could prevent ineligible individuals from taking advantage of a policy designed to assist the poor.

Implementing the updated scheme would require the government to channel subsidies directly to the recipients as opposed to subsidizing the energy itself, as is currently the case.

“We are in the process of refining the data to identify the right recipients. Thus, there will be no more mistargeted subsidies, as the subsidy [will go] directly to individuals,” presidential spokesman Hasan Nasbi said on Wednesday.

Prabowo conveyed his wishes in a limited cabinet meeting involving Coordinating Economic Minister Airlangga Hartarto, Finance Minister Sri Mulyani Indrawati and Industry Minister Agus Gumiwang Kartasasmita.

They were also joined by Pertamina CEO Nicke Widyawati and PLN CEO Darmawan Prasodjo, the heads of the country’s state-owned oil and electricity businesses, respectively.

Prabowo has set a two-week deadline to finalize the new scheme and has tasked Statistics Indonesia (BPS) to lead the data preparation, with additional support from other ministries.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

By registering, you agree with The Jakarta Post's

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

Reforming the energy subsidy scheme would play a pivotal role in maintaining a healthy state budget in the years to come, given the plans of the new government to pursue other priorities, including the hefty free meals program, which will feed 83 million people and cost $28 billion annually when running at full scale.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Prabowo instructs ministers to prepare reform of energy subsidy scheme

Rp 29,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 29,000

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.