Indonesian Parliament Criticizes Misuse of Subsidized Diesel Fuel

Regulatory Loopholes Allow Modern Vehicles to Access Subsidized Fuel

The Indonesian Parliament's Commission XII has raised concerns about the misuse of subsidized diesel fuel following findings that modern vehicles, including Toyota Fortuner and Mitsubishi Pajero models from recent years, are accessing subsidized diesel. Parliament member Syarif Fasha revealed this during a public hearing, emphasizing that these vehicles should be using more appropriate fuel types like Dexlite or Pertamina Dex.

Current Regulations and Their Limitations

Fasha pointed out that existing regulations only specify engine capacity (CC) limits for subsidized fuel eligibility, without considering the vehicle's manufacturing year. This loophole allows newer, more luxurious vehicles to access subsidized diesel meant for lower-income groups or specific economic sectors. The lawmaker stressed that regulations should be updated to include vehicle age restrictions to prevent such misuse.

Implications of Fuel Subsidy Misuse

The misuse of subsidized diesel not only strains state finances but also creates an uneven playing field for various industries. It distorts fuel consumption patterns and affects the overall effectiveness of Indonesia's energy subsidy program. The government faces pressure to reform the subsidy system to ensure it reaches the intended beneficiaries while minimizing leakage to unintended users.