Jakarta: Coordinating Minister for Maritime and Investment Luhut Binsar Panjaitan revealed the government's plan to revoke the LPG 3 kg subsidy to be more efficient. According to him, there is no government plan to trouble the community through this policy.
"There is no plan to harm the community. The context is efficiency," said Luhut at the Maritime Office, Central Jakarta on Friday, January 17, 2020.
He added, the government wanted the LPG 3 kg subsidy to be enjoyed only by people in need. Because so far, the LPG 3 kg subsidy is considered not on target so that a subsidy will be done in closed manner.
"All the subsidies will gradually be reduced but we will give directly to those in need. Because it seems (the current situation) less efficient," he said.
The government wants to control the distribution of LPG 3 kg subsidies in a closed manner so that it is better targeted through restrictions and application of prices in accordance with the market economy.
Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Ego Syahrial said the LPG 3 kg is one of the biggest subsidy components that rely on the State Budget (APBN).
"We want to control it, because that is one of the biggest subsidy contributions in the republic," Ego said met at the SKK Migas office, South Jakarta on Wednesday, January 15, 2020.
Ego said that the Ministry of Energy and Mineral Resources was currently building a system to distribute the closed subsidies. The mechanism of closed subsidies is directly distributed to people who are entitled to need them. Because currently users of the melon colored LPG cylinders are not restricted, meaning that people who are able at this time can still consume LPG 3 kg.