Jokowi on Reducing Subsidized Fuel: No Decisions Made as Plan Moves Forward
Jakarta. President Joko "Jokowi" Widodo announced that the plan to limit subsidized fuel purchases is currently being disseminated, though no formal decisions or meetings have occurred yet.
“We are still in the dissemination phase and will evaluate the situation as it develops. No decisions or meetings have been held so far,” Jokowi stated during a visit to Sleman, Yogyakarta, on Wednesday.
Jokowi explained that the proposed restrictions are intended to tackle pollution, particularly in Jakarta, and improve budget efficiency for the 2025 state budget.
The Indonesian government and the House of Representatives (DPR) have agreed to cut the volume of subsidized fuel in the 2025 Draft State Budget (RAPBN) to better target subsidies.
Energy and Mineral Resources Minister Bahlil Lahadalia announced a reduction in subsidized fuel volumes, including kerosene and diesel, from 19.58 million kiloliters in 2024 to 19.41 million kiloliters in 2025.
Bahlil emphasized that this reduction is part of a broader strategy to improve efficiency and ensure subsidies are more accurately targeted. Evaluations by the Ministry and Pertamina have been carried out to ensure effective distribution.
“Well-targeted subsidies lead to greater efficiency. We aim to ensure these subsidies are not misused by luxury vehicles,” Bahlil said during a meeting with Commission VII of the DPR in Jakarta on Tuesday.
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