"It is difficult to ban people from buying something sold in the market. We cannot prevent them from buying the subsidized cylinder when the commodity is available in both subsidized and non-subsidized versions," the minister said in Jakarta on Friday.
He made the remarks at the presidential office after attending a limited cabinet meeting on plans to integrate energy subsidy and the prosperous family card program.
According to the minister, President Joko Widodo (Jokowi) told the meeting at the very beginning that the government will allocate subsidized fuel oil (BBM), subsidized 3-kg LPG cylinders worth Rp32.3 trillion as well as electricity subsidy worth Rp45 trillion, but pointed out that not all of these were going to the poor families.
He quoted the president as explaining that more than 65 percent of energy subsidies in the form of 3-kg LPG cylinders were going to households that did not really deserve these.
The president also requested that the gas subsidy be integrated with the poverty reduction program, especially with the family welfare cards program (KKS).
"Theoretically, all subsidy recipients can buy the subsidized 3-kg LPG cylinder, but what about those who cannot afford it? Will they be given subsidy directly? It does pose a problem but we have not yet decided whether they should buy these cylinders using the KKS card," added Jonan.
Meanwhile, Minister of Social Affairs Khofifah Indar Parawansa pointed out that those eligible for subsidy can use the KKS to purchase subsidized LPG under the cash-less system.
"Pak (Mr) Jonan knows it. We have begun efforts to integrate it. The assistance is given in cash-less form. Cards have been integrated. At least, the PKH (family improvement) program and Rastra (rice) assistance can be integrated," Khofifah underlined.
Khofifah also admitted that the subsidized LPG and electricity subsidy will be integrated with the PKH and Rastra programs, but reminded that it will take some time.
"We also want to integrate the subsidy with electricity subsidy. There are 55 million LPG household recipients, 45.1 million electricity subsidy recipients while 6.5 million are covered under PKH program," she explained. (WDY)
