Jakarta, Indonesia Sentinel — Indonesia’s top Islamic authority, the Indonesian Ulema Council (MUI), has issued a fatwa declaring it “haram” (forbidden in Islam) for wealthy individuals to use government-subsidized fuel and liquefied petroleum gas (LPG). The council argues that such subsidies are intended for low-income citizens, and their misuse by the affluent constitutes an ethical and religious violation.
MUI’s Fatwa Commission Secretary, KH Miftahul Huda, emphasized that the government specifically allocates subsidized energy for those in need, including public transportation operators, fishermen, and small-scale farmers. Speaking on Thursday (Feb. 6, 2025), he stated, “People with high incomes are not entitled to use subsidized fuel and LPG. This is a matter of fairness.”
Religious and Ethical Violations
Miftahul Huda cited Islamic teachings to support the ruling, referencing Quranic verses that emphasize justice and fairness. He explained that using subsidies meant for the poor violates the principle of social justice, an essential component of Islamic ethics.
“Islam mandates fairness and prohibits taking advantage of resources meant for the less fortunate,” he said, citing Surah An-Nahl (16:90), which calls for justice and the fair distribution of resources.
The cleric also warned that exploiting government subsidies constitutes a breach of trust, referencing Surah Al-Baqarah (2:188), which prohibits unlawfully consuming wealth that rightfully belongs to others. “This is an act of betrayal,” he added, stressing that such actions could be categorized as ghasab—the unlawful seizure of another person’s property in Islamic jurisprudence.
MUI’s stance aligns with broader government efforts to curb the misuse of energy subsidies, a longstanding issue in Indonesia’s economic landscape.
Government’s Push for More Targeted LPG Subsidies
The Indonesian government has been struggling to ensure that subsidized energy reaches its intended recipients. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia acknowledged that the existing distribution system is flawed, allowing wealthier citizens and businesses to benefit from state-funded subsidies.
“Gas and fuel subsidies are meant to help the lower-income population, but without proper oversight, they often benefit those who don’t actually need them,” Lahadalia stated on Saturday (Feb. 8, 2025).
The government currently subsidizes three essential energy resources: fuel, electricity, and LPG. According to Lahadalia, state spending on LPG subsidies alone reached approximately 87 trillion rupiah ($5.5 billion) in 2024.
To address the issue, Lahadalia revealed that the government is restructuring the LPG distribution system to ensure that only eligible households, small businesses, and farmers benefit from it.
“President Prabowo has instructed that every cent of government funds must be used efficiently and reach the people who truly need them,” he said. “This includes ensuring that subsidized LPG and fuel are not exploited by wealthier individuals.”
The Scale of the Problem
A recent investigation by Indonesia’s Corruption Eradication Commission (KPK) and law enforcement agencies found significant inefficiencies in the distribution process, contributing to financial losses for the state. Officials reported that many high-income households and businesses were purchasing subsidized fuel and LPG at artificially low prices, undercutting the program’s intended purpose.
Lahadalia provided a breakdown of the subsidy program’s impact: a single LPG cylinder, which should cost 36,000 rupiah ($2.30), is sold at a heavily subsidized price of just 12,000 rupiah ($0.75). However, the state’s inability to properly regulate distribution has resulted in widespread abuse.
To curb this, the government is working to tighten supply chains and implement stricter monitoring mechanisms to prevent wealthier individuals from taking advantage of these subsidies.
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Public Reaction and the Path Forward
The MUI fatwa has sparked discussions among Indonesians, with many supporting the ruling as a necessary step to uphold economic fairness. Social media users have also drawn parallels between the current issue and previous cases of subsidy fraud.
Critics, however, argue that beyond religious rulings, Indonesia needs stronger law enforcement to prevent misuse of state subsidies. “Issuing a fatwa is one thing, but ensuring compliance is another. The government needs to enforce tighter regulations,” one user wrote on social media.
As the Indonesian government moves forward with subsidy reforms, MUI’s ruling adds a moral and religious dimension to the debate. While the fatwa itself carries no legal weight, it may influence public sentiment and encourage wealthier citizens to reconsider their use of subsidized energy resources.
Indonesia now faces the challenge of turning this moral ruling into tangible policy changes—ensuring that subsidies genuinely benefit the people who need them the most.
(Becky)
