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Dream - News is circulating that the presidential candidate number 2 will cut energy subsidies, including fuel oil (BBM), to fund the free lunch and milk program. Deputy Chairman of the National Campaign Team (TKN) Prabowo-Gibran, Eddy Soeparno, denies the plan to cut BBM subsidies for the realization of the free meal program.
"It's not like that. We had an energy subsidy of Rp500 trillion last year, Rp350 trillion this year, and the largest portion of that energy subsidy is for Pertalite and 3 kg LPG subsidies, that's the largest," said Eddy, as quoted from merdeka.com, Saturday, February 17, 2024. According to Eddy, the fuel subsidy, especially Pertalite, is actually not targeting the right recipients."
"Those who bought Pertalite today, those who bought 3 kg LPG, 80 percent of the buyers are the wealthy, not those who are entitled to buy, those who are wealthy are not entitled," said Eddy."
The following is the translation of the given 'Bahasa' text to 'English' while preserving any html tags: "This condition will later be evaluated by the Prabowo-Gibran government if officially declared as the elected president. "If we evaluate this, we will arrange for the subsidy to be targeted accurately, the energy subsidy budget doesn't need to be that large. So there will be no cuts in fuel," he concluded."
The second step to reduce energy subsidy budget, according to Eddy, is by utilizing domestic energy resources. "We utilize domestic energy sources that are green in nature, such as solar, water, and geothermal energy, in order to reduce dependence on imports, imports of fuel, 3 KG LPG. By doing so, it means there will also be savings," he said.
"Previously, Eddy stated that the Prabowo administration will make adjustments to energy subsidies for a period of 2 to 3 months after officially taking office in October. "Around 80 percent of the Rp350 trillion budget allocated by the government for solar and 3 kg LPG subsidies, apparently benefits the middle and high-income communities in Indonesia," said Eddy."
Eddy noted, Indonesia's tax revenue is only equivalent to 10 percent of the Gross Domestic Product (GDP), while neighboring countries in Southeast Asia have a tax ratio of 14 percent.
"Income reform should help allocate funds for Prabowo's main campaign promises, namely providing lunch and milk to 80 million school children in Indonesia, helping improve health and education outcomes, as well as creating job opportunities for women and entrepreneurs," said Eddy. Eddy stated that this program is estimated to cost more than Rp400 trillion, which is larger than the entire budget deficit of Rp347.6 trillion recorded in 2023, or about 1.65 percent of GDP."
He added, to help fulfill his campaign promises, Prabowo will strive to build a strong coalition in parliament, including by inviting other parties such as the leading candidate PDI-P. Not only that, Prabowo may recruit other presidential candidates, Anies Baswedan and Ganjar Pranowo, to join his government.
"dream.co.id"
The information was revealed by senior journalist Uni Lubis.
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