"The BBM subsidy scheme is almost final. We will wait for the president to return. We will report it comprehensively to the president," Lahadalia said while speaking in Jakarta on Friday.
After updating President Prabowo on the scheme, the minister said he would immediately announce the distribution formula or scheme for the fuel and electricity subsidies to ensure they are more targeted.
"After that, I will announce it to fellow journalists," he remarked.
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In addition, Lahadalia revealed that he would head to the United Arab Emirates (UAE) tonight to accompany President Prabowo on his overseas trip scheduled on November 8-24.
"I will be leaving tonight for the United Arab Emirates to accompany the president," he remarked.
Earlier, the minister drew attention to three schemes for distributing fuel and electricity subsidies to ensure they reach the right targets, with the first aiming to divert all fuel subsidies into direct cash assistance.
The second scheme entails maintaining the fuel subsidy in kind for all transportation and public facilities to curb inflation. Meanwhile, most of the subsidies for the public would be redirected into direct cash assistance.
The third alternative is to increase the price of subsidized fuel.
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Lahadalia emphasized that the trio of formulas would help rectify the current inefficiencies in subsidy distribution, thereby optimizing the process.
"Honestly, I would say that around 20-30 percent of the BBM and electricity subsidies have the potential to be misallocated, and that is a huge amount, around Rp100 trillion," the minister noted in Jakarta on Sunday (Nov. 3).
Translator: Kuntum Khaira Riswan
Editor: Rahmad Nasution
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