Jakarta—Until May 2024, the Ministry of Energy and Mineral Resources (EMR) strictly monitored the distribution and filling of 3-kg LPG cylinders, reducing subsidy payments to Pertamina by Rp 95.4 billion.
The EMR ministry said this step was taken to ensure that the subsidised LPG is enjoyed by the rightful people, in line with Presidential Regulation Number 59 of 2020 concerning Amendments to Presidential Regulation Number 71 of 2015 concerning the Determination and Storage of Basic Needs and Important Goods.
“For the distribution of 3-kg LPG cylinders, the Ministry of Energy and Mineral Resources through the Directorate General of Oil and Gas is committed to monitoring so that it is right on target and right on content,” said Mustika Pertiwi, Director of Downstream Oil and Gas Business Development, in a press conference on Tuesday, June 25.
The Ministry of EMR carries out this supervision and involves collaboration between various parties. “Supervision of the supply and distribution of 3-kg LPG cylinder refills must be carried out jointly by the Directorate General of Oil and Gas with related ministries and institutions, such as the Directorate of Metrology, the Directorate of Basic Needs and Important Goods of the Ministry of Trade, the Indonesian Police, the Ombudsman, the Directorate General of Budget and Fiscal Policy Agency of the Ministry of Finance, the Coordinating Ministry for Human Development and Culture, and the Regional Government,” she explained.
In addition, PT Pertamina (Persero), a related business entity, also plays an active role in this supervision. Supervision is carried out at the LPG Bulk Filling and Transportation Station (SPPBE) to ensure that the net weight of 3 kg LPG cylinders meets the provisions of Goods in Packaged Condition (BDKT) in accordance with the Minister of Trade Regulation Number 31/M-DAG/PER/10/2011.
“Supervision of the filling of 3 kg LPG cylinders is carried out at SPPBE to ensure that the net weight of LPG meets the BDKT requirements,” Mustika added.
In practice, this supervision involves verification of the gain value at all SPPBEs. This gain is a correction factor that reduces subsidy payments for 3-kg LPG cylinders to Pertamina, as the business entity tasked with providing and distributing 3-kg LPG cylinder refills.
“The total gain value at SPPBE from January to May 2024 reached Rp95.4 billion for which no subsidy was paid,” Mustika said. The efficiency achieved results from intensive supervision and cooperation of various parties involved.
The Ministry of Energy and Mineral Resources does not work alone in this supervision. Synergy with various ministries, agencies, and local governments is key to success. The Directorate of Metrology ensures the accuracy of LPG scales, while the Directorate of Basic Needs and Essential Goods oversees the availability and distribution of essential goods. The Indonesian National Police and the Indonesian Ombudsman also play a role in law enforcement and public oversight.
“We work closely with various parties to ensure that this monitoring is effective and efficient,” Mustika said, adding that the step is important to ensure that the rightful people enjoy subsidised LPG and that there is no abuse or misuse.
Local governments are also involved in ensuring that supervision at the local level goes well. With good coordination between the centre and the regions, supervision can be carried out thoroughly and down to the lowest level.
Mustika said the state savings demonstrate the effectiveness of supervision. These savings can be allocated to other more urgent programs or to improve the quality of supervision and distribution of subsidized LPG in the future.
“These savings are significant and show that strict supervision and cooperation can produce great efficiency for the country,” Mustika said. (Hartatik)
