Jakarta – The Indonesianโ government is moving to overhaul its subsidy โฃdistribution system,particularly for energy,to eliminate benefits for wealthier citizens,Finance Minister Purbayaโ yudhi sadewa announced Thursday. The move โcomes after โfindings revealed thatโฃ individualsโ in higher income brackets โฃare currentlyโฃ receiving subsidies intended forโฃ lower-income populations.
“Weโ redesigned โthe subsidy โso that it is more targeted because now that we have seen it, itโ turns out that the rich still get it,” Purbaya stated following a meeting with Danantara and Commission โฃXI โDPR RI at the Parliament Complex on December 4th. “I have been given โคthe next six months to design it.”
The Ministryโข of Finance has โbeen tasked with redesigning the schemeโ within six months, with aโฃ phased implementation expected over the next โขtwo years. The focus โwill shift subsidies awayโค from decile โgroups 8, 9, and 10โข towardsโฃ deciles 1โข through 4.
According to Purbaya, the โimprovements require โคclose coordination with Danantara, the state-owned โคenterprise holding company,โ as the โคchanges will impact state-owned businesses fulfilling Public Service Obligations (PSOs) involving subsidies and compensation.
Danantara Indonesia CEO Rosan Roeslani โaffirmed the collaboration,stating โthat the joint effort โaims for fairer and more targeted distribution โof subsidies โand compensation. “With โthese bettermentโฃ efforts,โข he ensures that the โsubsidy and compensation distribution budget can be moreโ efficient, โฃbut will still not โreduce the rights that should be obtained by the community,” Roeslani โsaid. He added โฃthat the changes would also benefit state-owned enterprises burdened by โPSO-related subsidy costs.
