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View all search resultsThe government has finally confirmed an extension to the HGBT subsidy program, but at higher rates of $7 per MMBtu for power plants and $6.5 per MMBtu for industrial use, citing rising global prices of the commodity.
Energy and Mineral Resources Minister Bahlil Lahadalia said that the government is currently considering two options: replacing the subsidy entirely with a direct cash transfer (BLT) for those deemed eligible, or partially reducing the subsidy alongside BLT for low-income earners.
In the case of the Commuter Line pricing system, the subsidy scheme is not only to serve the public good, but also to amplify the positive externalities of using public transportation, including less air pollution and less traffic congestion.
With its relatively low costs, Commuter Line has been favored by many; it helps transport nearly 800,000 passengers within Jakarta and across neighboring cities of Bekasi, Bogor, Depok and Tangerang in a day.
Indonesia needs a comprehensive strategy to reduce its reliance on imported LNG that strikes a balance between social, environmental and economic factors in achieving energy self-sufficiency, while contributing to global efforts to combat climate change.
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