The poorest groups are actually getting very little benefit from this subsidy.Jakarta (ANTARA) - As much as 5.07 million metric tons or 68 percent of the subsidized 3-kilogram (kg) LPG has been consumed by wealthy households, or 60 percent of affluent families, Finance Minister Sri Mulyani Indrawati has said.
Meanwhile, only 32 percent or 2.39 million metric tons of the subsidized LPG has been utilized by the poor, or 40 percent of the lowest household group.
“So, this is relatively small compared to subsidized fuel oil, but there are more wrong targets," Minister Indrawati said at a press conference on the follow-up to the results of the Coordinating Ministry for Economic Affairs' coordination meeting on fuel subsidy policy, which was followed online from here on Friday.
The situation is not much different from the case of Pertamax fuel, which has been subsidized by PT Pertamina, with 86 percent or 4.51 million kiloliters (kl) of the fuel going to 60 percent of the richest people in Indonesia.
Meanwhile, only 14 percent or 760 thousand kl of the subsidized Pertamax fuel has been consumed by 40 percent of the lower income class.
Pertamina is paying for the price difference of 4,800 per liter or 27.7 percent between Pertamax's economic price of Rp17,300 per liter and retail price of Rp12,500 per liter.
The energy subsidy of Rp502 trillion has the potential to increase to Rp698 trillion this year, Indrawati opined and added that the subsidy is mostly being enjoyed by the upper-middle class.
"The poorest groups are actually getting very little benefit from this subsidy," the minister added.
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Translator: Agatha O V, Mecca Yumna
Editor: Sri Haryati
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