Govt will uphold the implementation of digital system in LPG subsidy distribution

Jakarta—The Indonesian government confirms that a digital system for the distribution of LPG subsidies will remain in place to protect the purchasing power of the poor. The subsidy budget for LPG is IDR 87.45 trillion in the 2024 State Budget.

In an official statement, the Director of Downstream Oil and Gas Business Development, Mustika Pertiwi, emphasized that implementing a digital system for the distribution of subsidized 3-kilogram LPG will ensure that the distribution is carried out transparently and efficiently.

“There are still sub-distributors who have not fully recorded transactions in merchant apps (MAP) or have recorded them but with incomplete data. Through this socialisation, we hope that sub-distributors will be more orderly and more enthusiastic about recording transactions through MAP,” he said.

Fuel Subsidy Coordinator Christina Meiwati Sinaga added that all sub-distributors are required to implement transaction recording in MAP. “We ask Pertamina to ensure that all sub-distributors record transactions through MAP with stages of 30 per cent in October 2023, 60 per cent in November 2023, and 100 per cent in December 2023,” she explained.

However, Christina highlighted that sub-distributors still have not reached the target of recording transactions in MAP. “We ask sub-distributors to record transactions every time consumers buy 3 kg LPG cylinders and do it in real-time,” she added.

PT Pertamina (Persero) SVP Government Program Management Aris Mulya Azof emphasized the company’s responsibility to ensure the smooth distribution of subsidized LPG.

“The quota for 3 kg cylinder LPG in 2024 of 8.03 million metric tons is a challenge and a common concern in the distribution of these subsidized goods so that the distribution realization does not exceed the predetermined quota,” he said.

To support the transformation of LPG distribution that is right on target, the Regional Marketing Director of PT Pertamina Patra Niaga (PPN), Mars Ega Legowo Putra, confirmed the company’s readiness to succeed in the program.

“Make sure at the base, we record 100  per cent. We believe that 100 per cent of the base records can be the basis for LPG subsidy assertions,” he said.

These steps mark the commitment of the government and industry players to maintaining efficiency and transparency in distributing subsidized LPG for the community’s welfare. (Hartatik)

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