2020, Decision on Subsidized Fuel Quota for Business Entities is Made Quarterly

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 727.Pers/04/SJI/2019

Date: 31 December 2019

2020, Decision on Subsidized Fuel Quota for Business Entities is Made Quarterly

The decision on the quota on Subsidized Fuels in Fiscal Year 2020 for Business Entities will be made quarterly, unlike in previous years when decision was made annually. The regulation remains the same for PT Pertamina (Persero) and PT AKR, both of which will be given a quota for one whole year.

Head of Regulating Agency for Downstream Oil and Gas (BPH Migas) Fanshurullah Asa says that this quarterly distribution is made to see how far Business Entities have carried out their commitment to distribute Subsidized Fuel right on target, in addition to digitalization.

"For 2020, the meeting of BPH Migas Committee has agreed the distribution of Subsidized Fuels is not done annually, but is instead divided quarterly. This is done to see the commitment of business entities that use Subsidized Fuels, such as PT KAI, ASDP, and PT Pelni, in distributing on-target Subsidized Fuels," said Fanshurullah in a press conference after the handover of Decision on the Assignment and the Quota of Certain Fuels (JBT) and Assignment Fuels (JBKP) of 2020 to Business Entities Receiving the Assignment and Governors throughout Indonesia, Monday (30/12) in Jakarta.

In addition to the commitment to distribute Subsidized Fuels to the entitled people, Fanshurullah says the quarterly decision is made to see the commitment and seriousness of business entities to digitalization. The quarterly decision is also taken to anticipate that the revision of Presidential Regulation Number 191 of 2014 is approved. "The quota of Subsidized Fuels will be given to business entities quarterly except to PT Pertamina (Persero) and PT AKR which will still be given annually," explained Fansharullah.

The distribution of Subsidized Fuels is a national priority program to provide Subsidized Fuels for the needy, however in practice the distributed volume often exceeds the quota set jointly by the House of Representatives (DPR) and the government due to a number of factors, for example misappropriation.

"In this 2019, based on BPH Migas' records, the over-quota of Subsidized Fuels until 29 December 2019 is 1.3-1.5 million kiloliter with potential state loss of around Rp 3 trillion", Fanshurullah revealed.

To minimize misappropriation, in addition to applying nozzle digitalization at 5,518 refueling stations, the government together with relevant agencies, Directorate General of Oil and Gas, regional governments (provincial/regency/municipal), TNI/Polri, BIN, and Commission VII of the House as well as PT. Pertamina (Persero) conduct direct monitoring to the field/gas stations on a routine basis. (IY)

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