Released restrictions on subsidized fuel starting 1 October

Jakarta –

Energy and Mineral Resources Minister Bahlil Lahadalia confirmed that there are plans to limit subsidized fuel on October 1. Before it is implemented, Bahlil said his party will socialise.

“Yes, of course there is such a plan. Because as soon as the rules come out, the Ministerial Rule comes out, there will be time for socialization. So, this is the time to socialize it am I talking now,” said Bahlil in response to the news of restrictions on subsidized fuel on October 1 at the Jakarta DPR, Tuesday (27/8/2024).

Bahlil said that restrictions on subsidized fuel would be implemented through the issuance of a ministerial regulation (Permen). Previously, the government said it would regulate the purchase of subsidized fuel through a review of Presidential Decree No. 191 of 2014.

“Candy,” Bahlil confirmed.

In RAPBN 2025, the government proposes a subsidized fuel volume of 19.41 million kiloliters (KL). This amount is lower than 2024 APBN of 19.58 million KL.

Bahlil said the decline occurred because the government intended to ensure that fuel distribution was on target. With the right targeting, the subsidized fuel quota can be reduced.

“Yes, we are planning so that the subsidy pattern must be right on target. With a well-targeted subsidy pattern, we hope that the quota will go down. So that there will be savings in the state’s money. If the quota goes down, the subsidy goes down so that the money is used for priority things,” he explained.

In addition, in the working meeting between Bahlil and Commission VII discussing the concepts of the ESDM sector in the APBN Bill 2025, several things were agreed. One of them is increasing the oil production target from the 600 thousand barrels per day (bopd) to 605 thousand bopd. The meeting also agreed to increase the quantity of LPG by 3 kg from the proposed 8.17 million metric tonnes to 8.2 million metric tonnes.

Next decision, Commission VII understands the explanation of the Minister of Energy and Mineral Resources regarding the ceiling of the 2025 budget of the Ministry of Energy and Mineral Resources of IDR 10,884,702,389,000 obtained from pure rupiah and PNBP for the mining and coal and oil sectors gas and it will do that. be investigated by the entire echelon I of the Ministry of Energy and Mineral Resources.

The following are the assumptions for the ESDM sector in RAPBN 2025 approved by Commission VII and the Minister of Energy and Mineral Resources:

1. Indonesian Crude Price (ICP): US$ 82 per barrel
2. Oil and gas production: 1,610 million barrels of oil equivalent per day (boepd)
-Petroleum production: 605 thousand barrels per day (bopd)
– Natural gas production: 1.005 million boepd
-Cost of rehabilitation: US $ 8,5 thousand

3. Amount of subsidized fuel: 19.41 million KL
-Petroleum: 0.52 million KL
-Diesel oil: 18.89 million KL

4. Volume of LPG 3 kg: 8.2 million metric tons
5. Fixed content for diesel oil: IDR 1,000 per liter
6. Electricity subsidy: IDR 90.22 trillion

(acd/kil)