2.4 Million MT LPG Distributed Until April 2021

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 175.Pers/04/SJI/2020

Date: 25 May 2021

2.4 Million MT LPG Distributed Until April 2021

The Indonesian Ministry of Energy and Mineral Resources (EMR) reported a total of 2.4 million metric tons (MT) of subsidized Liquified Petroleum Gas (LPG) has been distributed until April 2021. This volume equals a subsidy amount of Rp15.04 trillion.

"The realized distribution between January and April 2021 is 32.21 percent of the national quota 7.5 million MT," said Director General of Oil and Gas of the Ministry of EMR, Tutuka Ariadji, in a hearing with Commission VII of the House of Representatives on Monday (24/5).

Tutuka continued that distribution in March exceeded the set quota. "This was due to more distribution days, namely 27 days, and the increase in the number of sub-distributors aimed at meeting the target of One Village One Outlet (OVOO) program," he explained.

West Java, East Java, and Central Java are the three provinces with the largest quotas because the number of LPG users in these provinces is the highest since the roll-out of kerosene to 3-kg LPG cylinder conversion.

For 2021, the government will increase the number of sub-suppliers to ensure that 3-kg LPG is available in the villages included in the conversion program and to reduce the distribution chain.

The Ministry of EMR will also work with relevant stakeholders to supervise and control the distribution of 3 kg LPG to prevent over-quota.

"Twelve provincial governments and 154 district/city governments have issued policies on the use of non-subsidized LPG by state apparatus (ASN) and non-micro businesses," said Tutuka.

According to the audit result of state audit body BPK, the subsidy for 3-kg LPG cylinder in 2021 is Rp8,781 per kilogram, rising by 64.3% from the previous year. Meanwhile, the retail price is Rp4,250 per kilogram.

For 2021, the subsidy ceiling for 3-kg LPG is Rp36.56 trillion, while in 2020, the realized subsidy according to the audit result of BPK is Rp40.25 trillion.

For the record, the 2021 national quota of 7.5 million MT has included the conversion plan for households and micro businesses in Eastern Indonesia, the conversion plan for target fishermen and farmers, and the allocation for force major and scarcity. Meanwhile, the national quota for non-conversion purpose amounts to 7.4 million MT. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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