Govt Distributes 705 Converter Kits to Fishermen in South Sulawesi and East Kalimantan

MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 671.Pers/04/SJI/2019

Date: 25 November 2019

Govt Distributes 705 Converter Kits to Fishermen in South Sulawesi and East Kalimantan

Ministry of EMR through Directorate General of Oil and Gas (DG O&G) continues the conversion of oil fuels to Liquefied Petroleum Gas (LPG) for artisanal fishermen having fishing boats of maximum 5 Gross Tonnage (GT).

As many as 705 converter kit packages were handed out to these fishermen, with 580 packages in Wajo, South Sulawesi and 125 packages in Penajam Pasem Utara, East Kalimantan, respectively, on Thursday (21/11) last week.

For Wajo Regency, the distribution of these 3-Kg converter kit packages is the second after similar distribution of 582 packages back in 2018. Overall, Wajo fishermen have received 1,162 packages.

"We (the government) want our fellow fishermen to have enough purchasing power. One of the ways is this Oil-Fuels to Gas-Fuels Conversion Program. If we compare the fishing costs by using LPG with that by using gasoline, the difference is quite high," explained Director of O&G Infrastructure Planning and Development Alimuddin Baso when he handed out the aid at the 45 Fish Auction Center in Watalipue Village, Wajo Regency, an event which was also attended by Vice Regent of Wajo, Amran.

For comparison, a Wajo fisherman needs 5 liters of oil fuel or about Rp 50,000 for one fishing trip. If he uses LPG, he needs about 1 cylinder of LPG at Rp 20,000. "The content of 3-kg LPG cylinder is equivalent to 7 liters of gasoline. Not bad, you can save Rp 30,000 for one fishing trip. Maybe, if the fisherman was unable to buy his children school clothes, now he can with this additional saving," said Ali.

Additionally, the selection of LPG as fuel has been based on fishermen's familiarity with the gas fuel, while the fuel offers similar machine performance for low-power motors.

"The converter kit program is actually aimed to bring down the operational costs of fishermen so that they have higher income. By using LPG-fueled converter kits, fishermen can save operational costs up to about 30%, assuming there is no subsidies for LPG. With subsidies which are now applied to both gasoline and LPG, saving can reach up to about 50%," explained Director of O&G Upstream Business Fostering, Mustafid Gunawan, in Penajam Paser Utara Regency.

Vice Regent of Penajam Paser Utara, Hamdam, expresses his gratitude to the government for caring for the economic condition of artisanal fishermen. The converter kit aid really helps fishermen's economy. "The converter kits must not be handed over, rented out or traded. Instead, they have to be maintained as well as possible, these kits have been distributed to improve the welfare of fishermen living in Penajam Paser Utara," he said.

The oil-fuel to LPG converter kit packages consist of several components, namely machine, converter kit, long shaft, propeller, 2 cylinders of 3 kg LPG, and other supporting accessories (reducer, regulator, mixer, etc.).

The criteria for fishermen eligible to receive converter kit packages according to Presidential Regulation No.126 of 2015 on Supply, Distribution, and Pricing of LPG for Fishing Boats of Artisanal Fishermen are, among others, fishermen who own fishing boats with maximum size of 5 Gross Tonnage (GT), the boat is gasoline-fueled or diesel-fueled, and its machine power is less than 13 Horse Power (HP). (IY)

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

Agung Pribadi (08112213555)

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