Introducing subsidized fuel allocation, Bahlil sends a strong message to car owners

Jakarta –

The government has decided the energy subsidy budget for 2025. The main focus of subsidies next year is still on Fuel Oil (BBM) and Liquefied Petroleum Gas (LPG).

Based on the results of the working meeting Minister of Energy and Mineral Resources (ESDM) with Commission VII DPR, the total amount of subsidized fuel allocated in 2025 will reach 19.41 million kiloliters (KL).

In detail, kerosene amounted to 0.52 million KL and diesel oil amounted to 18.89 million KL. At the same time, for 3 kg LPG, the government provided a quantity of 8.2 million metric tons.

According to the Minister of Energy and Mineral Resources, Bahlil Lahadalia, this subsidy allocation has decreased compared to the previous year’s target of 19.58 million KL. The aim is to distribute subsidized fuel more precisely on a target basis.

For this reason, Bahlil warned that more luxury cars should not ‘drink’ subsidized fuel.

“More luxury cars will not use subsidized products,” Bahlil said in a written statement, Wednesday (28/8/2024).

At the same time, the subsidy amount for diesel is IDR 1,000 per liter in 2025. This decision was taken after considering the social and economic impact of the increase in fuel prices.

In addition to fuel and LPG, the government has also allocated a budget of IDR 90.22 trillion for electricity subsidies in 2025 and an increase from the 2024 target of IDR 73.24 trillion.

“This increase is driven by the estimated increase in the number of electricity subsidy recipients from 40.89 million customers in 2024 to 42.08 million in 2025,” Bahlil explained.

Responding to the electricity subsidy allocation for 2025, the Deputy Chairman of Commission VII DPR RI Maman Abdurrahman expressed the importance of targeting electricity subsidies more precisely.

“We need to focus on people in Eastern Indonesia and within Kalimantan who are in dire need of energy subsidies,” Bahlil said.

In addition, Maman also emphasized the need to improve data on subsidy recipients so that the rich do not receive subsidies, so that the state budget can be used more efficiently. (RD)

(ly/hns)