Government to Limit Subsidized Fuel on October 1, Jokowi: Still Socializing

REPUBLIKA.CO.ID, JAKARTA -- President Joko Widodo (Jokowi) said the plan to restrict the purchase of subsidized fuel oil (BBM) is still in the process of socialization. The Ministry of Energy and Mineral Resources (ESDM) said it is likely that the implementation of this restriction will be implemented on October 1, 2024.

“I think we are still in the process of socialization and we will see on the ground what it will be like,” the President told the press after inaugurating the Building of Maternal and Child Health Services Hospital (RS) Sardjito Yogyakarta in Sleman Regency, Special Region Yogyakarta (DIY), Wednesday (28/8/2024).

Baca Juga

Nevertheless, he revealed that until now there had been no meeting or even a decision on restricting the purchase of subsidized fuel. “There has been no decision, there has been no meeting,” he said.

The president also disclosed the reasons for the restrictions on fuel purchases, mainly related to the problem of air pollution and also the efficiency of the State Revenue and Expenditure Budget (APBN).

“The first of these concerns later mainly in Jakarta with pollution, the second we also want to have efficiency in our state budget, especially for 2025,” the President said.

Earlier, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said restrictions on the purchase of new subsidized fuel will be implemented after the establishment of the Ministerial Regulation (Permen).

“Because so the rules are outward, the candy is outward,” Bahlil said in Jakarta, Tuesday (27/8).

He confirmed that the possible implementation of restrictions on the purchase of subsidized fuel will take effect on October 1, 2024. According to him, right now what the government is doing is discussing the right time to provide socialization to the community.

“There may be a time for socialization, well this time of socialization that I now discuss again,” he said.

Bahlil said that later the regulations related to the purchase of subsidized fuel will be regulated in the ESDM Confectionery instead of the Presidential Regulation (Perpres) Number 191 of 2014 on the Supply, Distribution and Retail Selling Price of Fuel which is currently in the process of revision.