Prabowo Taps ‘Fixer’ Bahlil to Zap Indonesia’s Fuel Subsidy Habit

JAKARTA, Investortrust.id — President Prabowo Subianto is moving to dismantle Indonesia’s decades-long addiction to fossil fuel subsidies with the creation of a high-powered "Energy Transition Task Force." To lead the charge, he has tapped Energy and Mineral Resources Minister Bahlil Lahadalia, the administration’s go-to operative for high-stakes industrial mandates.

The task force is not merely a bureaucratic gesture but a direct response to a fiscal emergency. For the Indonesian government, the math is simple: every liter of gasoline saved by a commuter is a liter the state does not have to subsidize. By accelerating the pivot to renewables and electric mobility, the administration hopes to insulate the state budget from the volatile swings of global oil prices.

This policy matters because it represents one of the most aggressive decarbonization timelines in the developing world. Prabowo is demanding results within three to four years—a breakneck pace for a nation where millions of households still rely on subsidized "Pertalite" gasoline. If successful, the move could transform Indonesia from a carbon-heavy laggard into a regional blueprint for rapid energy sovereignty.

The 120 Million Motorbike Challenge

The centerpiece of the plan is an audacious logistics play: converting the nation’s 120 million internal combustion motorcycles into electric vehicles (EVs).

"We are going to try to do this in stages," Bahlil told reporters at the Merdeka Palace on Thursday. While the government has managed to convert roughly 200,000 units annually in recent years, the new mandate requires an exponential scale-up.

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The economic barrier to entry is finally falling. According to Bahlil, new technology has driven the cost of conversion down to approximately Rp 5 million to Rp 6 million (roughly $300 to $355) per bike. The government is currently "formulating various support schemes" to ensure that the working-class owners of these vehicles—the backbone of the Indonesian economy—are not priced out of the transition.

Solar Power and Subsidy Efficiency

The transition is not limited to the streets. The President has also ordered the rapid implementation of a 100-gigawatt (GW) solar power program. The strategic goal is to replace aging diesel-fired power plants (PLTD) with solar arrays (PLTS), a move that Mr. Bahlil describes as a primary lever for "subsidy efficiency."

"By converting from diesel to solar, we will see a direct reduction in our electricity subsidies," Mr. Bahlil explained. "At the same time, we are creating the infrastructure needed to power the very electric cars and motorcycles we are pushing onto the roads."

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A Four-Year Sprint

While previous administrations have spoken of "green roadmaps" stretching toward 2050, the Prabowo administration is operating on a much shorter fuse.

"The President is very keen for implementation to happen immediately," Bahlil said. "He stated that this should take a maximum of three to four years, and if possible, even faster."

The success of this task force will depend on whether Bahlil can bridge the gap between presidential ambition and the logistical reality of the Indonesian archipelago. For now, the message from the Palace is clear: the era of cheap, subsidized gasoline is drawing to a close, replaced by a mandate for a cleaner, self-sufficient, and electrified economy.