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.
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.
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.
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