Jakarta—Minister of Energy and Mineral Resources (MEMR) Bahlil Lahadalia in Jakarta on Tuesday, February 4, said the government is set to transform around 375,000 retailers of 3 kg subsidised LPG canisters into sub-distribution centres to enhance transparency and control over the distribution system. This move will ensure subsidies reach the intended recipients and prevent price manipulation.
He said the policy change is designed to stabilise prices and improve monitoring. “We want to ensure that subsidised 3 kg LPG reaches those entitled. By converting retailers into subbases, distribution will be better supervised, and prices will remain stable,” Bahlil stated during a visit to an LPG distribution centre.
Retailers will be officially registered in the LPG distribution system as sub-distribution centres, addressing previous challenges. Transactions at the retailer level were complex to regulate, often leading to inflated prices.
Technology-based monitoring system
The government and state-owned energy company Pertamina will implement a digital monitoring system to track subsidised LPG distribution in real-time to support this transition.
“We are preparing a technology-based system to prevent leaks and ensure accurate monitoring of 3 kg LPG distribution,” Bahlil explained.
Additionally, the government will collaborate with law enforcement to prevent misuse and speculation. Bahlil warned that strict action would be taken against any violations.
The new policy has received mixed reactions. Some business owners, such as Samsudin, an LPG base operator in Depok, support the initiative, hoping it will stabilise prices and ensure a steady supply. “If it helps smoothen distribution and keeps prices stable, I agree. The important thing is that LPG remains available,” he said.
However, some retailers expressed concerns over the transition process. Rina, an LPG retailer in Semarang, urged the government to clarify further. “We need to know the requirements for becoming a sub-base. Will there be financial assistance or additional facilities? This is still unclear,” she said.
The government has assured that the policy will be continuously evaluated and adjusted to optimise distribution and subsidy effectiveness. (Hartatik)
