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Energy subsidy to be integrated with social security cards
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President Joko “Jokowi” Widodo (left) talks to Vice President Jusuf Kalla during a plenary Cabinet meeting to discuss government programs in 2017 at Bogor Palace in West Java. (Antara/Yudhi Mahatma)
P
resident Joko "Jokowi" Widodo has said the government plans to integrate an energy subsidy into a social safety net program through the Prosperous Family Card (KKS) for the sake of distribution efficiency.
Jokowi said his ministers had discussed the integration plan during a Cabinet meeting on Friday.
"We will allocate Rp 32.3 trillion [US$2.42 billion] for a fuel and gas subsidy and Rp 45 trillion for an electricity subsidy in 2017, but I want to emphasize that the energy subsidy must reach the target," he said at the State Palace before the meeting.
However, Coordinating Human Development and Culture Minister Puan Maharani said the integration would be implemented in 2018 because the Social Affairs Ministry, Energy and Mineral Resources Ministry, state-owned electricity company PLN and oil and gas company Pertamina had to discuss the plan further.
"Whether the subsidy will be in goods or cashless through e-money should be discussed further so it will not break related rules," she said.
She added that four regulations related to the issue — the laws on oil and gas; electricity; poverty eradication; and social affairs — must be considered. She expressed the hope that no law revisions would be needed for the implementation of the integration.
Jokowi added that 65 percent of subsidized 3-kilogram gas canisters were bought by wealthy households as well as 900 VA electricity mostly being enjoyed by “non-poor people”. (bbn)
