Indonesia's President-elect Prabowo Subianto will better target energy subsidies by paying them directly to people, which may save up to 200 trillion rupiah ($13.3 billion), his key economic advisor said on Wednesday.
Indonesia currently subsidises certain types of fuel and electricity tariffs, a policy that has kept inflation low but has exposed state coffers to swings in global oil prices. Fuel subsidies reached 500 trillion rupiah last year.
Burhanuddin Abdullah, Prabowo's key economic advisor who was also the country's central bank governor from 2003 to 2008, told an economic seminar the incoming government planned to target the subsidies towards recipients, rather than products.
"We want to improve data ... so that subsidies can be given as cash transfers directly ... to families that deserve it. That's what we're going to do," he said.
Burhanuddin also said private companies will play an important role in meeting Prabowo's goal of lifting economic growth to 8%.
He said pilot programmes of a key election pledge of giving free meals to school students have been "promising," including improved health and higher school attendance, and had also benefited local businesses.
Prabowo will take office on Oct. 20.
($1 = 15,085 rupiah)
