THE Indonesian government is currently designing and implementing a new scheme for fuel oil (BBM) subsidies to ensure that this assistance is more targeted and reduces waste that has occurred so far.
In this new scheme, fuel subsidies will no longer be given evenly, but will be more focused on certain groups of people and sectors that really need them.
The new fuel subsidy scheme aims to ease the burden on low-income communities and optimize the use of subsidy funds for productive sectors.
This step was taken because previously it was felt that fuel subsidies were not on target and there was potential for abuse by groups who did not need the assistance.
Therefore, the government through the Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Social Affairs (Kemensos) is introducing a more measurable mechanism.
The following are several categories of fuel subsidy recipients based on the new scheme that will be implemented:
1. Poor and Vulnerable Communities
The government will prioritize providing fuel subsidies to the people registered in Integrated Social Welfare Data (DTKS). This group consists of poor families who have low incomes and are vulnerable to poverty. Distribution of subsidies to them is expected to help them reduce their burden of expenses, especially in transportation and household energy costs.
2. Micro, Small and Medium Enterprises (MSME) Group
MSMEs are a sector that is very vulnerable to fluctuations in energy prices, especially fuel. Therefore, this business group will receive more attention in the new subsidy scheme. The government hopes that by providing subsidies to MSMEs, small businesses can maintain the continuity of their businesses without having to be burdened with high energy costs.
3. Public Transportation
Public transportation such as buses, public transportation and motorbike taxis are often people’s mainstay in daily mobility. With more focused fuel subsidies, it is hoped that public transportation costs will be more affordable. This will certainly have a positive impact on people who depend on public transportation for their activities.
4. Farmers and Fishermen
Farmer and fisherman groups who need fuel for agricultural and fishery operations will also be the main recipients of this subsidy. Many farmers use fuel to operate agricultural machinery, while fishermen need fuel for boats and fishing gear. With subsidies, it is hoped that agricultural and fishery products will be more affordable and improve the welfare of farmers and fishermen.
5. Specific Industries
Certain industrial sectors, such as those involved in food security, production of basic commodities, and other sectors that support people’s basic needs, will also receive fuel subsidies. The government considers these sectors to be very important for the continuity of the national economy, so that the subsidies provided can increase competitiveness and reduce production costs.
Use of Technology for Distribution of Subsidies
The government also plans to use technology to optimize the distribution of fuel subsidies. One of the proposed mechanisms is to use special applications and cards that make it easier to monitor subsidy recipients.
Through this system, the government can more easily verify who is entitled to receive subsidies and avoid potential abuse that has often occurred in the past.
In addition, quota restrictions for each type of fuel will also be implemented to ensure that only those who are entitled to subsidies receive them. In this way, it is hoped that there will be no more misuse or waste of subsidies that are not well targeted.
The implementation of the new fuel subsidy scheme certainly faces challenges, especially in terms of verifying accurate recipient data and transparency in distribution.
However, if implemented well, this scheme is expected to increase the efficiency of using the subsidy budget and provide greater benefits for people in need.
The government hopes that with well-targeted subsidies, sectors that depend on fuel can continue to run at more affordable costs, while poor people will no longer be burdened by ever-increasing fuel prices. (Z-10)
Source:
- Ministry of Energy and Mineral Resources (ESDM). (2024). New Fuel Subsidy Scheme and Its Distribution. Jakarta: Ministry of Energy and Mineral Resources.
- Ministry of Social Affairs (Kemensos). (2024). Integrated Social Welfare Data (DTKS). Jakarta: Ministry of Social Affairs.
#Fuel #Subsidy #Scheme #Recipients #Considered #Targeted
* How might the targeted nature of the new scheme affect different socioeconomic groups in Indonesia? [[1]## New Fuel Subsidy Scheme in Indonesia: An Interview
**Host:** Welcome back to the show. Today we’re discussing the Indonesian government’s new fuel subsidy scheme announced by Energy and Mineral Resources Minister Bahlil Lahadalia. With us today is [Guest Name], an expert on Indonesian economic policy.
[Guest Name], thanks for joining us.
**Guest:** It’s a pleasure to be here.
**Host:** So, what can you tell us about this new fuel subsidy scheme?
**Guest:** This is a significant shift in Indonesia’s approach to fuel subsidies. Previously, subsidies were distributed evenly across the board, which led to inefficiency and potential misuse. The new scheme aims to be more targeted, focusing on specific groups and sectors that truly need assistance.
**Host:** Could you elaborate on who will benefit from this new scheme?
**Guest:** Absolutely. The government has identified several key target groups:
* **Low-income households**: Those registered in the Integrated Social Welfare Data (DTKS) will receive priority, helping them manage costs for transportation and household energy, [Guest Name], can you speak about the significance of focusing on helping low-income families?
**Host:** That’s very crucial considering the rising cost of living. What about other sectors?
**Guest:** Yes, beyond individuals, the scheme targets:
* **Micro, Small, and Medium Enterprises (MSMEs)**: These businesses are vital to the economy but vulnerable to fuel price fluctuations. Subsidies will help them maintain stability.
* **Public Transportation**: This will hopefully make public transport more affordable, benefiting those who rely on it daily.
* **Farmers and Fishermen**: These groups often require fuel for their operations. Subsidies will contribute to stable food prices and support their livelihoods.
* **Strategic Industries**: Sectors crucial for food security, basic necessities, and national economic stability will also receive support.
**Host:** The government has also mentioned the use of technology in distributing these subsidies. How will that work?
**Guest:** This is a key aspect. The government is planning to leverage technology for more efficient and transparent distribution. This could involve digital platforms for registration, verification, and subsidy disbursement, helping to reduce leakage and ensure funds reach the intended recipients.
**Host:** This sounds like a comprehensive and promising approach. What are some of the potential challenges in implementing this new scheme?
**Guest:** Certainly, there will be challenges.
**Guest Name**, please share your insights on potential hurdles the government may face?
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* What are the potential economic impacts of the new scheme?
* How will the government ensure transparency and accountability in the distribution process?
* Are there any concerns about excluding certain groups from the scheme?
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