Expanding Fuel Supply Access, BPH Migas to Build Distribution Units in Villages

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 207.Pers/04/SJI/2020

Date: 12 June 2020

Expanding Fuel Supply Access, BPH Migas to Build Distribution Units in Villages

The government has continued to show its commitment to expanding access to energy supplies across Indonesia. To realize the commitment, the government wants every village to have its own oil fuels distribution unit.

"The government through BPH Migas wants that every village ideally has its own distributor or SPBU (fuel refilling station). Of course the category will be adjusted, whether mini or medium or large. But we want to guarantee the supply of fuels across Indonesia, so ideally these fuel stations should be built in 75 thousand villages. This is a challenge for the next 5 or 10 years," said Head of Downstream Oil and Gas Regulating Agency (BPH Migas), Fanshurullah Asa, in a virtual discussion titled the Impacts of Covid-19 on Oil Fuels Subsector, Friday (12/6).

The current number of distribution units, continued Ifan-Fanshurullah's nickname, was not ideal for optimized distribution of fuels to all corners of Indonesia. These distribution units are made up of Public Gas Station (SPBU), Fishermen Gas Station (SPBN), Bunker Fuel Station (SPBB), Solar-Diesel Packed Dealer for Fishermen (SPDN), and Small and Medium-scale Fuel Agent (APMS). "There are only 7,251 distribution units and 192 fuel terminals," explained Ifan.

Ifan went on to explain that to ensure fuel distribution, monitoring also had to be carried out to the transportation and trade of natural gas channeled via the 5,192.12 KM of transmission pipelines and 6,133.54 KM distribution pipelines. "Natural gas pipelines have been constructed, for transmission and distribution, for thousands of kilometers; these pipelines must be monitored, particularly those supplying to industries," said Ifan.

According to Ifan's presentation, the average volume of distributed oil fuel is 83.3 million KL annually, while the number of Business Entity (BU) monitored is 1,166 Oil Fuel BU and 35 Natural Gas BU.

Cooperation with Universitas Indonesia

To answer these problems and challenges, BPH Migas has formed new cooperation with Universitas Indonesia (UI). The cooperation covers research on analysis, dissemination, and community service in downstream oil and gas subsector to respond to the impacts of the COVID-19 pandemic and to prepare long-term policies. "The cooperation will be defined further in cooperation agreements, it can also be formed at faculty level," explained Ifan.

There are 4 (four) key points in the BPH Migas and Universitas Indonesia cooperation, namely analysis of JBT (Certain Fuel Oil Types) needs for special and land transportation consumers and non-transportation consumers; analysis of BPH Migas Strategic Plan for 2020-2024; multiplier effect and added value analysis of utilization of BPH Migas fee; and other cooperation as agreed.

"This is a challenge of how BPH Migas cooperation with the academics including UI can help formulate regulations that will create efficiency for public interest," Ifan continued.

Ifan went on to explain the cooperation with other parties would use the operational funds of BPH Migas that came from oil and gas business entities amounting Rp1.3 trillion. Only a small portion of Rp 250 billion is used for operational expenses, so the remaining Rp 1 trillion will be used by BPH to develop cooperation with a number of parties to find ways to dealt with downstream oil and gas challenges, for example, the national reserves of oil fuels. "What we do have now is limited to the operational reserves of business entity," he said.

Meanwhile, UI Rector Ari Kuncoro warmly welcomed the cooperation. This cooperation will make academic research useful in the real world, not just as ivory tower or observer. "Methodologies are not effective if they're not implemented. I hope the research will offer the best solutions to the government in responding to the impacts of the pandemic," Ari confirmed. (IY)

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

Agung Pribadi (08112213555)

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