Jakarta. The Energy and Mineral Resources (ESDM) Ministry has responded to reports suggesting that subsidized fuel will be phased out by 2027. The speculation originated from National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan.

Energy Minister Bahlil Lahadalia said he could not yet comment in detail, as he had just learned about the matter. Discussions on subsidized fuel allocations are still ongoing within the ministry.

"I can't comment on something I don't know yet. We are still calculating, and for now, it remains in place," Bahlil said at the ESDM office in Jakarta on Friday.

Bahlil added that while there is talk of ending fuel subsidies by 2027, the government is preparing a new subsidy distribution scheme for energy, including fuel, electricity, and liquefied petroleum gas (LPG).

One of the proposed schemes involves a "blending" model, where subsidies would be partially allocated to goods while the rest would be distributed as direct cash assistance (BLT) to ensure targeted aid and maintain consumer purchasing power.

"Just wait, one of the alternatives nearing a decision is the blending scheme," Bahlil said.

Earlier, DEN Chairman Luhut Pandjaitan indicated that fuel subsidies could be removed by 2027, with the government implementing a single fuel price policy. However, he clarified that this remains a proposal aimed at making subsidies more effective by directly assisting those in need rather than subsidizing goods like fuel.

Luhut also suggested that if the single-pricing policy is adopted, it could leverage artificial intelligence (AI) technology to enhance implementation and efficiency. Luhut also mentioned Indonesia is planning to develop its very own version of DeepSeek, the Chinese low-cost artificial intelligence or AI that is taking the world by storm.

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