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Indonesia carrying out 'thorough workout' to reform fuel aid scheme, minister states

Indonesia is conducting a. comprehensive exercise to reform its fuel aid scheme, its energy. minister said on Monday, as the new president aims to reinin. aids that totaled up to about 16% of budget spending last. year.

Bahlil Lahadalia stated the policy on the liquefied petroleum. gas subsidy will not be changed while the government is. thoroughly calculating information on fuel and electrical energy aids.

For electrical energy and fuel aids, we are still doing a. extensive workout because we require to be cautious, Bahlil told. press reporters.

Indonesia presently subsidises particular kinds of fuel and. electricity tariffs, a policy that has kept inflation low but. has exposed state coffers to swings in worldwide oil rates.

President Prabowo Subianto has planned to cut energy. subsidies and will instead offer cash handouts to families in. need, according to his key financial consultant.

The strategy is anticipated to save approximately 200 trillion rupiah. ($ 12.71 billion) with well-targeted energy aids.

Indonesia's fuel subsidies amounted to 500 trillion rupiah. ($ 31.78 billion) last year.

Bahlil said he aims to report the brand-new aid plan. formulation to Prabowo in about a week.

(source: Reuters)