President Prabowo Subianto is said to want an evaluation of the provision of fuel oil (BBM) and electricity energy subsidies so that they are more targeted. For this reason, a number of other options are being prepared to use state money more effectively, one of which is through Direct Cash Assistance (BLT).
“It is being discussed in the Targeted Subsidy Task Force at the Ministry of Energy and Mineral Resources,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at a Limited Coordination Meeting press conference regarding discussions on the Ministry’s Quick Win program in the Economic Sector, Jakarta, Sunday (3/11).
Minister of Energy and Mineral Resources Bahlil Lahadalia said that the president conveyed the desire to encourage targeted subsidies at a Limited Meeting some time ago. The Head of State, he added, requested that a study be carried out regarding more targeted subsidies.
This was driven by the value of energy subsidies and compensation which reached IDR 435 trillion this year. From this value, there is the potential for distribution that is not on target. This is known from reports from PLN, Pertamina and BPH Migas.
“Approximately 20% -30% of fuel and electricity subsidies have the potential to be off target, the figure is approximately IDR 100 trillion,” said Bahlil.
Therefore, on Monday (4/11), his party will hold a joint meeting with related parties regarding targeted subsidies. So far, from the evaluation that has been carried out, targeted subsidies are focused on the transition to BLT.
“One of them is whether the subsidy is not on target, then we give BLT, directly to the community, or are there other options, or are they blended. Just wait, the president has given us two weeks, and we will finish it in two weeks. I will let you know when the exercise is finished. “Now we are exercising,” concluded Bahlil. (Z-11)
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**Interview with Coordinating Minister for Economic Affairs Airlangga Hartarto on the Implementation of the Fuel Oil Direct Cash Transfer Program**
**Interviewer:** Thank you for joining us today, Minister Hartarto. Can you explain what the Fuel Oil Direct Cash Transfer Program, or BLT-BBM, entails?
**Airlangga Hartarto:** Thank you for having me. The BLT-BBM program is an initiative by the government aimed at providing direct cash assistance to citizens in lieu of traditional fuel and electricity subsidies. This program is designed to target support more effectively and ensure that those who need help the most receive it directly.
**Interviewer:** What prompted the government to shift from fuel and electricity subsidies to this direct cash transfer system?
**Airlangga Hartarto:** President Prabowo Subianto emphasized the need for a thorough evaluation of existing subsidies to make them more targeted and efficient. He believes that direct cash assistance will help us allocate state funds more effectively, ensuring support reaches the intended beneficiaries while reducing unnecessary expenditures.
**Interviewer:** Can you elaborate on the progress of this initiative?
**Airlangga Hartarto:** Currently, this matter is under discussion by the Targeted Subsidy Task Force at the Ministry of Energy and Mineral Resources. We are exploring various options and methodologies to ensure the successful implementation of the BLT-BBM, taking into account the needs of the population and the financial implications.
**Interviewer:** What impact do you anticipate the BLT program will have on citizens?
**Airlangga Hartarto:** We expect that the direct cash assistance will provide immediate relief to families that rely heavily on fuel. By bypassing the traditional subsidy format, we can offer more flexibility to recipients, allowing them to use the assistance according to their individual needs—whether for fuel, food, or other essential services.
**Interviewer:** when do you anticipate that citizens will begin to see the benefits from this program?
**Airlangga Hartarto:** As the discussions progress and we finalize our plan, we aim to roll out the BLT-BBM as swiftly as possible. We recognize the urgency of supporting our citizens during these challenging times and are working diligently to implement this program efficiently.
**Interviewer:** Thank you for your insights, Minister Hartarto. We appreciate your time and look forward to seeing the positive changes this program will bring.
**Airlangga Hartarto:** Thank you for having me.
