Gov’t Introduces Rp15,000 per Liter Fuel Price for 30-200 GT Fishing Vessels, Financed by BPDP Funds

President Prabowo Subianto has instructed the provision of special fuel price for fishing vessel operators whose ships range between 30 and 200 gross tons (GT).

This was conveyed by Coordinating Minister for Economic Affairs Airlangga Hartarto following a limited meeting led by President Prabowo Subianto at the Hambalang Residence in Bogor regency, Monday (07/13).

According to Airlangga, the price of non-subsidized fuel had previously surged to as high as Rp21,300 per liter, while fuel for fishermen with vessels under 30 GT is set at Rp6,800 per liter.

In light of this, Airlangga said that the President instructed that operators of fishing vessels between 30 and 200 GT should also receive a special price.

“The operators of fishing vessels need a special fuel price, and it has been agreed at Rp15,000 per liter,” he said.

Airlangga added that, based on the average domestic diesel production cost, the non-subsidized fuel price can be set at Rp18,600 per liter. Thus, the support gap of around Rp3,600 per liter will be financed through the Plantation Funds Management Agency (BPDP), rather than the State Budget.

“Therefore, Minister of Energy and Mineral Resources will issue regulations related to this subsidy, with the approximately Rp3,600 per liter subsidy to be financed by the BPDP,” Airlangga explained.

Airlangga also noted that the use of BPDP funds is feasible because the agency currently has sufficient resources to finance this policy, adding that the special fuel price for fishing operators will be implemented with a quota of 400,000 tons over the next six months.

Meanwhile, Minister of Energy and Mineral Resources Bahlil Lahadalia stated that this policy is part of the Government’s effort to provide certainty for business actors in the fisheries sector.

He added that the Rp15,000 per liter fuel price is expected to help reduce operational costs for fishermen operating vessels of 30 GT and above.

“All of this is intended to provide certainty for business actors in the fisheries sector, as prices are currently high. With the Rp15,000 per liter price, it is expected to ease operational costs for those operating vessels of 30 GT and above,” Bahlil said, adding that the Ministry will promptly follow up on the President’s instruction by issuing a ministerial decree.

The Minister also emphasized that financing for this price support will come from non-state budget sources.

“We will immediately issue a decree from Ministry of Energy and Mineral Resources to follow up on this,” he said.

Bahlil further stated that the Government will ensure this policy is implemented effectively and reaches its intended target, while distribution points will be coordinated with Minister of Marine Affairs and Fisheries to prevent misuse.

“To ensure this policy is not misused, we will ask that distribution points be determined in coordination with Minister of [Marine and] Fisheries, so that the Government’s good intention to help fishermen does not end up being misused again,” he remarked. (Bureau of Press, Media, and Information of the Presidential Secretariat) (EST/EP)