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.
Indonesia could end fuel subsidies in 2027, Luhut says
Luhut Pandjaitan, who heads the National Economic Council (DEN), has long pushed for ending subsidies on Solar and Pertalite, the country’s most popular subsidized fuels.
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!
Pengendara mengisi BBM jenis Pertamax di salah satu SPBU di Jakarta, Selasa (21/11/2017). Pertamina menaikkan harga BBM Jenis Pertamax menjadi Rp8.400 per liter atau naik Rp150 dari harga sebelumnya Rp8.250 per liter. (Antara/Akbar Nugroho Gumay)
L
uhut Pandjaitan, who heads the National Economic Council (DEN) is confident that Indonesia can phase out fuel subsidies in 2027, citing that he had proposed the plan to President Prabowo Subianto.
He said this would be done alongside a single nationwide fuel price, particularly for both Pertalite and Solar, as well as state-owned Pertamina’s subsidized RON-90 gasoline and diesel fuel with a cetane number (CN) of 48.
Fuel price could differ in certain parts of the country given that some regions may lack easy access and require higher logistical costs.
“I told the President that within two years, we could reach a single fuel price, [meaning] no more subsidies for materials such as fuel or diesel,” Luhut said on Thursday, as quoted by state-owned news agency Antara.
Read also: Govt to restrict subsidized fuel sales starting Aug 17, Luhut says
Instead of subsidizing fuel prices across the board, the government would provide direct cash aid to those who qualify, he added.
“Subsidies should go to people who actually need them,” Luhut said. “That’s the best way forward. We could save billions and billions of dollars.”
