“We proposed the volume of subsidized fuel in the 2025 draft state budget to be 18.84 million to 19.99 million kiloliters,” Energy and Mineral Resources Minister Arifin Tasrif said during a working meeting with Commission VII of the House of Representatives (DPR) here on Wednesday.
He informed that the subsidized fuel comprises around 0.51 million to 0.55 million kiloliters of kerosene fuel and around 18.33 million to 19.44 million kiloliters of diesel fuel.
He further explained that the direction of the subsidy policy is to provide permanent subsidies for diesel fuel and price difference subsidies for kerosene as well as to continue the road map for fuel consumer registration.
The steep increase in the volume of subsidized fuel compared to the outlook for 2024 is due to the use of the non-linear regression calculation method for fuel consumption against the 2025 gross domestic product (GDP) estimate, he explained.
"And (it is also due to) the method for escalating the rate of economic growth based on fuel distribution data with the assumption of economic growth of 5.2 percent," he added.
He said that this year, efforts have been made to optimize the implementation of barcodes for subsidy programs.
He informed that his ministry has proposed a quota of 8.17 million metric tons for subsidized 3-kilogram LPG for 2025.
He said that the direction of the LPG policy is to continue efforts to transform the 3-kilogram LPG subsidy into a beneficiary-based and integrated program by using accurate beneficiary data, including with the help of technology-based user data collection.
Furthermore, the transformation of the LPG subsidy program is being carried out by taking economic conditions and people's purchasing power into account.
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Translator: Muhammad Harianto, Raka Adji
Editor: Azis Kurmala
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