Monique Handa Shafira, Jakarta – A new fuel subsidy scheme will come into effect early next year, according to Energy Minister Bahlil Lahadalia.

The government has been exploring new fuel subsidy schemes for a more precise distribution. Indonesia will soon decide and announce the scheme that is also expected to help the country save money.

"But whatever [the new scheme] is, it is for the common good," Bahlil said in Jakarta on Wednesday.

"If God is willing, we will implement it starting in 2025," he added.

The government has been weighing the pros and cons of three possible schemes.

The first scheme is entirely shifting the subsidies to direct cash assistance so the aid can directly go to the well-deserving people.

The government is also mulling providing fuel subsidies exclusively for public transportation, while converting most of the subsidies to cash transfers.

Last but not least is raising the price of subsidized fuel. This will lessen the government's burden and prompt people to cut down on fuel consumption.

Earlier this month, Bahlil said that the government planned on making sure that online motorcycle taxi drivers still qualify for the subsidized fuel despite plans to revise the scheme. Despite its massive popularity, online bike taxis are not classified as public transport. Indonesia has around 4 million online drivers.

Source: https://jakartaglobe.id/news/new-fuel-subsidy-scheme-to-enter-into-force-early-next-yea