Luhut signals restrictions on subsidized fuel purchases from August 17 DPR members: implement through revision of Presidential Decree 191

TEMPO.CO, Jakarta – Vice Chairman of Commission VII of the House of Representatives (DPR) Eddy Soeparno agrees with the government’s plan to limit the purchase of subsidized fuel oil (BBM). Moreover, Eddy said, the restrictions had started when the government implemented a policy of purchasing subsidized fuel using the MyPertamina application.

“I hope that the following restrictions will be implemented through a revision of Presidential Decree Number 191 of 2024,” Eddy said when contacted by phone on Wednesday, July 10, 2024. Presidential Decree 191 of 2024 sets out the provisions, distribution and retail prices of heating oil.

The signal for limiting the purchase of subsidized fuel was given by Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan, Tuesday, July 9, 2024. Through an upload on his official Instagram account, Luhut stated that the government would start this restriction on August 17, 2024.

“We can reduce the number of people who are not eligible for subsidies,” said Luhut, quoted on Instagram @luhut.pandjaitan.

In response, Eddy then said that regulations need to be tightened to make the distribution of subsidies on track. With the revision of Presidential Decree 191, the types of vehicles that can use subsidized fuel can be clarified, Eddy said. “So there is a categorization. Including sanctions, if someone violates it,” the politician from the National Mandate Party (PAN) said.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif also said earlier that the long-standing conflict between Iran and Israel and the increase in fuel subsidies can be stopped by revising the Presidential Regulation or Presidential Decree 191 to limit the purchase of subsidized fuel. With the escalation of the conflict in Iran and Israel, Arifin Tasrif said there was an emergency to immediately complete the revision of Presidential Decree 191.

“The presidential decree will reduce (the subsidy burden),” Arifin Tasrif said, Friday, April 19, 2024, as quoted from Antara. So far, the revision of Presidential Decree 191 has not been completed. Since mid-2022, revisions to Presidential Decree 191 have even been proposed.

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