Energy and Mineral Resources (ESDM) Minister Arifin Tasrif has dismissed reports that the government would start to impose restriction on purchase of subsidized fuel on the country’s 79th Independence Day celebration on August 17, 2024.
“No, there is no such restriction on August 17, there is no limitation on the purchase of subsidized fuel,” Arifin said on Monday July 12, 2024.
He added that the ESDM ministry is still scrutinizing the data and the vehicles entitled to procuring subsidized fuel that by the time the policy is implemented, it will be really right on target.
The minister cited that the government is still processing the revision of Presidential Regulation No. 191/2014 on the Supply, Distribution and Retail Selling Price of Fuel.
Arifin said further that the revision of the Presidential Regulation is still under discussion in three ministries, namely the Ministry of Energy and Mineral Resources, the Ministry of State-owned Enterprises and the Ministry of Finance, before it will be finalized at the Coordinating Minister for the Economy.
The restriction scheme will be further regulated through a ministerial regulation that will regulate on the vehicle types entitle to subsidized fuel.
” It should be right on target, which vehicles or types that will get the subsidiy. No, nothing is limited to August 17. This is still not the case,” Arifin said.
As earlier reported, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that the government is targeting to start tightening the use of fuel subsidies on August 17, so as to reduce the amount of subsidy distribution to people who are not entitled.
Luhut made the statement when discussing the issue of fuel oil use related to the 2024 state budget deficit. He believes that by tightening subsidy recipients, the government can save the 2024 State Budget.
In addition to tightening the distribution of subsidized fuel, Luhut also revealed that the government is planning to encourage alternatives to gasoline through bioethanol.
Luhut believes that the use of bioethanol is not only able to reduce air pollution levels, but also because the sulfur level of this alternative fuel is also relatively low.
