by
Vietnam News Agency
Wednesday, August 28, 2024 10:49 PM GMT+7
The Indonesian government and the House of Representatives (DPR) have agreed to reduce the amount of subsidized fuel in the proposed 2025 National Budget (RAPBN), aiming to ensure a more targeted allocation of subsidies.
A gas station attendant serves customers in Jakarta. Photo courtesy of Antara.
Energy and Mineral Resources Minister Baril Lahadalia announced that the volume of subsidized fuels, including kerosene and diesel, would be reduced to 19.41 million kilolitres from a target of 19.58 million kilolitres for 2024.
The cuts are part of a broader plan to allocate subsidies more efficiently and in a more targeted way in 2025, the official said, adding that the ministry and state oil and gas company Pertamina were carrying out assessments and studies to ensure subsidies were accurately targeted.
Barry said subsidies would be more efficient if they were properly targeted, adding that the government wanted to ensure that such fuel subsidies benefited the poor.
He noted that the government and DPR have agreed to maintain diesel subsidy at Rp 1,000 per litre. Meanwhile, due to rising public demand, the volume of subsidised LPG is set to increase to 8.17 million tonnes in 2025, above the 2024 target of 8.07 million tonnes.
Baril said Indonesia’s Ministry of Energy and Mineral Resources was looking into developing the gas network and growing the LPG industry.
He further said that although there were challenges related to raw materials, the ministry was working with oil and gas regulator SKK Migas and Pertamina to address these issues.
