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Jakarta Post

Govt, House agree to lower diesel subsidy rate, larger volume of subsidized gas

  • Stefanno Reinard Sulaiman¬†

    The Jakarta Post

Jakarta   /   Mon, June 24, 2019   /  04:04 pm
The Jakarta Post Image
Energy and Mineral Resources Minister Ignasius Jonan (left) attends a hearing at the House of Representatives in this file photo.(Antara/Agung Rajasa)

  The Energy and Mineral Resources Ministry and House of Representatives Commission VII, which oversees energy, have agreed to cut the diesel fuel subsidy next year and channel the savings to provide more gas to the people. The subsidy for diesel fuel, sold under the Solar brand, is to be cut to Rp 1,500 (11 US cents) per liter next year in order to increase the volume of subsidized liquefied petroleum gas (LPG). Lawmaker Maman Abdurrahman from the Golkar Party said during the House hearing on June 20 that the decision was made in consideration of the high demand for subsidized LPG and people’s difficulty in accessing it. “Looking at the Solar fuel subsidy, one cannot separate it from the ongoing efforts to convert kerosene to gas. Hence, we proposed transferring [a portion of the] Solar...