Jakarta – The government will establish a special agency to monitor subsidised LPG, which will be given the authority and structure similar to the Downstream Oil and Gas Regulatory Agency (BPH Migas). The Minister of Energy and Mineral Resources (MEMR), Bahlil Lahadalia, said that the study on the agency has narrowed down to two options: forming an ad hoc agency or establishing a permanent body.
“After the study, there are only two options, whether we build the ad hoc or permanent agency,” Mr Lahadalia said at a press conference last weekend.
This major reform in the supervision of the distribution of 3-kilogram subsidised LPG was taken following the experience of LPG scarcity in early 2025 and the imbalance in the supervision mechanism compared to the distribution of subsidised fuel.
Bahlil highlighted serious imbalances in the current energy subsidy monitoring system. He says subsidised fuel worth between Rp135 trillion and Rp170 trillion is overseen by specialised institutions such as BPH Migas. Meanwhile, subsidised LPG worth Rp80 trillion to Rp87 trillion is only supervised by a small unit of the Ministry of Energy and Mineral Resources.
“The distribution of Rp170 trillion worth of fuel is supervised by an agency (BPH Migas), while Rp87 trillion worth of LPG is only supervised by echelon II officials and a small team of seven people? This is not fair,” he said.
Therefore, Bahlil emphasised that the supervisory structure for subsidised LPG must be strengthened, especially since a new distribution mechanism is being set up to ensure that subsidies are truly targeted.
A serious problem arose in February 2025 when retailers were banned from collecting subsidised LPG directly. The policy disrupted distribution, and LPG shortages occurred in many areas, triggering queues and panic among residents.
“The regulation may be right, but if the supervision is weak, there will always be the potential for chaos. Last February was enough of a lesson. I don’t want to be missed again,” Bahlil said firmly.
The government is now said to be making careful preparations for revamping the LPG distribution system, including building a data-based mechanism and more accurately identifying beneficiaries.
This step is considered necessary not only for budget efficiency, but also to maintain supply stability and fairness in energy distribution for the poor and vulnerable. (Hartatik)
Banner photo: shutterstock
