Gov’t Amends Regulation on Subsidized Fuel Distribution

President Joko “Jokowi” Widodo on 24 May 2018 signed a Presidential Regulation Number 43 of 2018 on the Amendment to Presidential Regulation Number 191 of 2014 on Procurement, Distribution and Fuel Retail Prices.

The regulation stipulates that fuel type of gasoline with registered octane number (RON) minimum 88 (Premium) shall be available at gas filling stations in the islands of Java, Madura and Bali.

“Under the coordination meeting led by Coordinating Minister for the Economy, the Minister (in charge of the issue of fuel distribution) may specify the fuel distribution of gasoline type with registered octane number minimum 88 in the region of the excluded assignment referred to in paragraph 3,” Article 3 paragraph (4) of this Presidential Regulation says.

In the meantime, Article 3 paragraph (3) states that area of fuel distribution assignment of gasoline type with registered octane number minimum 88 covers the entire territory of the Unitary State of the Republic of Indonesia (NKRI), except in the Special Capital Region of Jakarta Province, Banten Province, West Java Province, Central Java Province, East Java Province, Special Province of Yogyakarta, and Bali Province.

Although Java, Madura and Bali Island do not belong to the Assignment Area, according to the Regulation, those three islands can still get a Premium allocation with the status of assignment as long as it is approved by the results of the meeting with the Coordinating Minister for the Economy and approved by the Minister.

“The Presidential Instruction is clear. The President wants the people’s need for premium to be fulfilled all over Indonesia. So, Minister of Energy and Mineral Resources has ordered to Pertamina (state-owned oil and gas company) to provide Premium fuel in Java, Madura and Bali Island,” Head of the Ministry’s Communication, Public Information Service and Cooperation Bureau Agung Pribadi said on Thursday (31/5).

As a follow-up of the Regulation, Minister of Energy and Mineral Resources Ignasius Jonan on 28 May 2018 signed Decree of Minister of Energy and Mineral Resources Number 1851 K/15/MEM/2018 on Procurement and Distribution Fuel Type of Special Assignment in the Special Capital Region of Jakarta Province, Banten Province, West Java Province, Central Java Province, East Java Province, Special Province of Yogyakarta, and Bali Province.

“Procurement and distribution fuel type of Special Assignment shall be carried out by a business entity based on the assignment of the Governing Body (the Downstream Oil and Gas Regulatory Agency/BPH Migas),” the Decree says.

The decree also states the Governing Body sets further conditions on the location and allocation of the volume of assignment of procurement and distribution fuel type of Special Assignment.

With the Presidential Regulation, Ministry of Energy and Mineral Resources estimates that Premium will be available again at 571 gas filling stations in Java, Madura and Bali Island before this year’s Eid Day and will be distributed gradually to other gas filling stations.

For the record, the BPH Migas has recorded that there are 1,926 gas filling stations in Java, Madura and Bali Island that do not sell Premium fuel. (Humas Kementerian ESDM/ES) (GWH/EP/Naster)