Jakarta, CNBC Indonesia – The Prabowo-Gibran National Campaign Team (TKN) assesses that Indonesia’s State Revenue and Expenditure Budget (APBN) is still leaking. The cause of the leak is state spending on energy and misdirected subsidies.
“Apart from increasing state income, we will also prevent APBN leaks. Don’t just increase it, let us let the leaks go,” said TKN Prabowo-Gibran Deputy, Eddy Soeparno in the Your Money Your Vote program on CNBC Indonesia Wednesday (15/11/2023) .
The National Mandate Party (PAN) politician said that efforts to prevent budget leaks would include reducing energy and food imports. He said Prabowo-Gibran was committed to looking for domestic energy sources and developing new renewable energy.
“This means that we will strengthen domestic energy sources, especially new renewable energy, geothermal, solar, water and wind,” he said. Eddy explained that what he meant by APBN leakage was that too much of the state budget was used to import fuel oil.
Apart from reducing energy imports, Eddy said APBN leaks would also be addressed by preventing misdirected subsidies. He believes that so far the provision of social assistance, direct cash assistance, fuel, LPG and diesel subsidies has still been misdirected.
“The annual fuel, LPG, diesel and electricity subsidies in 2024 will reach IDR 350 trillion. 80% of the beneficiaries of these subsidies are people who are not entitled to receive them,” he said.
Eddy said that Prabowo-Gibran would take a number of steps to prevent these mistargeted subsidies from continuing. This is done by improving the recipient database and revising Presidential Regulation Number 191 of 2014 concerning the supply, distribution and retail selling price of fuel.
“We will improve regulations, including Presidential Decree 191 of 2014 which regulates who is entitled to energy subsidies and what sanctions there are for those who take and consume them,” he said.
[Gambas:Video CNBC]
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