Fuel Subsidy Overhaul May Not Include Motorcycle Taxis
New Distribution Scheme Targets Direct Assistance and Goods Subsidies
The Indonesian government is poised to implement a transformative fuel subsidy program, shifting away from blanket subsidies and adopting a targeted approach. This new scheme will prioritize direct cash transfers (BLT) and provision of subsidized goods, aiming for a more precise allocation of resources.
While the specifics of the distribution model are still under development, Minister of Energy and Mineral Resources Bahlil Lahadalia has indicated that online motorcycle taxis (ojols) may not be eligible for fuel subsidies. He highlighted the nature of ojol operations, classifying them as business activities rather than personal transportation.
“No, it is not included in the criteria,” Lahadalia affirmed.
He elaborated on his reasoning, pointing out that while some ojol drivers own their motorcycles, others are employed by companies. “Masa Is something like this subsidized?” he questioned, suggesting that subsidizing rides used for commercial purposes wouldn’t be fiscally responsible.
Lahadalia emphasized that the government’s focus with the new subsidy scheme is on ensuring that assistance reaches those who genuinely need it most. While ojol drivers themselves could be eligible for subsidies based on individual criteria, the use of motorcycles for business purposes seems unlikely to qualify for direct fuel support.
“But we calculate it carefully, which is clearly wise, to be wise,” Lahadalia assured, stressing that the decision-making process regarding subsidy eligibility would be meticulous and well-informed.
To ensure accurate identification of subsidy recipients, the government intends to leverage a centralized database of citizen information. This consolidated data, collected from various ministries and institutions, will be managed by the Central Statistics Agency (BPS), allowing for a comprehensive and data-driven approach to subsidy distribution.
How might Minister Lahadalia’s decision regarding fuel subsidies for motorcycle taxis impact public perception of the government’s support for the gig economy?[[1](https://mb.com.ph/2024/11/24/ltfrb-no-motorcycle-taxi-increase)]
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**Interviewer:** Minister Lahadalia’s statement that motorcycle taxis might not be eligible for fuel subsidies has certainly sparked a conversation. What are your thoughts on this decision and how do you think the public will respond?
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