Government Supports Pertamina's 3 Kg LPG Subsidies Transformation
Jakarta, August 4, 2023 - Pertamina is committed to implementing targeted transformations for the 3 Kg LPG Cylinder subsidies according to the government mandate. The government fully supports the commitment through the issuance of ESDM Decree No. 37.K/MG.01/MEM.M/2023 concerning Technical Guidelines for the Targeted Distribution of Specific Refillable LPG and Director General of Oil and Gas Decree No. 99.K/MG.05/DJM/2023 concerning the Phases and Schedule for the Targeted Distribution of Specific Refillable LPG. It was clarified during the press conference at the Ibnu Sutowo Building, Directorate General of Oil and Gas, on Thursday, August 3, 2023.
Tutuka Ariadji, the Director General of Oil and Gas, stated that the 3 Kg LPG cylinder subsidies transformation began with the data collection of 3 Kg LPG cylinder users data matching in 411 districts/cities. Starting from March 1, 2023, through Pertamina, the government has registered or collected 3 Kg LPG cylinder users' data at Distribution Points or Gas Stations through a web-based system (merchant apps) as the targeted distribution program's initial stage. It is processed gradually in consideration of the community's economic and social conditions and integrated with social protection programs.
"In this data collection phase, there are no restrictions on purchasing 3 Kg LPG cylinders. Buyers at gas stations only need to show their ID card and/or Family Card. Once registered, they only need to show their ID card for subsequent purchases. Micro-business requires an additional photo of them in the business location," he said.
Tutuka explained that as part of the efforts to ensure the 3 Kg LPG subsidies targeted distribution, the government, with the police and Pertamina, continues to enhance supervision and impose sanctions on agents, petrol stations, or individuals who commit violations, such as refilling non-subsidized LPG into 3 Kg cylinders. Apart from causing losses to the country and the entitled citizens, this practice poses a danger to public safety. Other forms of abuse of 3 Kg LPG cylinders include hoarding, selling above the set Maximum Retail Price (HET) determined by Local Governments, selling/transporting to areas outside the distribution regions (across districts/cities or areas where the conversion from kerosene to 3 Kg LPG has not been done), and transporting 3 Kg LPG using unregistered vehicles at the Agents.
"Therefore, it is necessary to improve the 3 Kg LPG distributing mechanism. Manual transaction recording in petrol station logbooks is vulnerable to manipulation, making it unable to accurately reflect the profiles of actual 3 Kg LPG cylinder users. The ongoing data collection and data-matching process is expected to address these challenges. The government expects support from all parties in implementing the targeted distribution transformation of 3 Kg LPG. This transformation process is not easy. There will be many obstacles and challenges in the field. But with joint efforts, we can overcome them. Thus, the support from agents, petrol stations, and the public becomes a key factor in this data collection or registration success," he added.
Alfian Nasution, the Logistics and Infrastructure Director of Pertamina Persero, revealed that Pertamina prepared a robust sufficient infrastructure to maintain energy supply throughout Indonesia to support this effort.
"Both our infrastructure and supply reliability are strong. We will continue to maintain and forecast until December 2023. We will operate at an optimal level, meaning we will neither have excessive nor insufficient supply for 14 to 15 days," he said.
Riva Siahaan, the CEO of Pertamina Patra Niaga, stated that Pertamina is striving to bring the 3 Kg LPG supply closer to the public. It is one of Pertamina's efforts to expand gas stations and reach retailers.
"So, even at the retailer level, we will encourage data collection at the consumer level as a measure to improve the accuracy of the distribution of the 3 Kg LPG," Riva concluded.
In implementing LPG distribution, especially for 3 Kg LPG, Pertamina also coordinates and collaborates with Local Governments and the Police.
Vice President of Communication, Fadjar Djoko Santoso, mentioned that to achieve accurate distribution, Pertamina invites the public to participate in monitoring and inquier any deviations or instances of improper distribution and contact the Pertamina Contact Center at 135.**