BPH Migas Makes Rp1.1 T in Non-Tax State Revenue

MINISTRY OF ENERGY AND MINERAL RESOURCES

THE REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 41.Pers/04/SJI/2022

Date: 26 January 2022

BPH Migas Makes Rp1.1 T in Non-Tax State Revenue

The Downstream Oil and Gas Regulatory Agency (BPH Migas) made Rp1.1 trillion of Non-Tax State Revenue (PNBP) from the downstream oil and gas business administration. This is 101% of the Rp1.086 trillion target set for 2021. The revenue comes from payments by business entities that provide and distribute oil fuels as well as those that carry out trading and/or transportation of natural gas through pipelines.

On the expenditure side, the realized 2021 budget reached 94.94%.

"We are grateful that we could exceed the PNBP target amid the pandemic. The achievement should encourage BPH Migas to perform even better in 2022", said Head of BPH Migas, Erika Retnowati, in Jakarta on Monday (24/1).

Besides the PNBP, the One-Price Fuels program also exceeded the target. For 2021, there are additional 78 retailers out of the 76 retailers target so that the cumulative realization until the end of 2021 reached 331 retailers. According to the road map, a total of 583 One-Price Fuels retailers will be established until 2024.

The One-Price Fuels program was launched by President Joko Widodo in late 2016. It aims to unify the sales price of Special Assignment Oil Fuel (JBKP, which refers to Premium gasoline) and Special Type of Oil Fuels (JBT, which includes Solar diesel and kerosene) across Indonesia. This is a mandate of Law Number 22 of 2001 on Oil and Gas.

Besides the PNBP and the One-Price Fuels, BPH Migas made a success in the following projects:

1. Natural Gas Pricing. In 2021, the natural gas price for households and small consumers was set for 15 regencies/cities out of the 12 regencies/cities target. Cumulatively until 2021, the natural gas price for households and small consumers has been set for 62 regencies/cities. For the record, households and small consumers natural gas price is cheaper and more competitive than the price of non-subsidized LPG.
2. Fixing of the Tariff to Transport Natural Gas through Pipelines (toll fee). Cumulatively until 2021, the toll fee of 70 segments has been fixed. For the record, one of the duties of BPH Migas is to fix the toll fee, one of the components that make up downstream gas price. The tariff should be set in a manner that is accountable, transparent, fair, and reasonable, giving due consideration to the interest of the transporters (business entities that hold the Permit to Transport Natural Gas through Pipelines) and the shippers (business entities that use the facilities belonging to transporters).
3. Natural Gas Infrastructure Construction. Until the end of 2021, a total of 19,045.78 kilometers of transmission, distribution, and gas networks have been constructed out of the target of 15,800 kilometers.
4. Distribution of JBT and JBKP. For the JBT of subsidized Solar diesel, as much as 15.59 million kiloliters (KLs) were distributed, or 99% out of the quota 15.80 million KLs. For the JBT of kerosene, a total of 0.48 million KLs, or 98% out of the quota 0.50 million KLs, were distributed. Meanwhile, the realized distribution of the Premium gasoline JBKP amounted to 3.4 million KLs or 34% out of the quota 10 million KLs.

BPH Migas will also improve the monitoring of JBT and JBKP distribution in 2022 to make sure the fuels reach their intended targets. For this reason, BPH Migas signed a Cooperation Agreement with the Indonesian National Police (POLRI) on November 9, 2021. The agreement sets out security, prevention and law enforcement assistance for the distribution of oil and gas fuels.

"We are committed to distributing oil fuels to remote areas of the country and providing competitive natural gas prices. To monitor the distribution of oil fuels, we enlist the support of the TNI, POLRI, and other stakeholders to ensure the fuels reach their intended targets," Erika concluded. (IY)

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