Energy Ministry Urges Local Governments to Supervise Subsidized LPG Use
Ministry of Energy and Mineral Resources (ESDM) Friday (04/22) issued Circular Number B-2461/MG.05/DJM/2022 that urges local governments to take part in supervising the use of 3-kg Liquified Petroleum Gas (LPG) so that it remains right on target.
“We hope for local government assistance to supervise the use of 3-kg LPG as intended in accordance with the provisions of the applicable laws and regulations,” the Ministry’s Director General of Oil and Gas Tutuka Ariadji stated in the circular.
For the record, the circular is addressed to 29 governors whose regions have undergo kerosene conversion to LPG, namely Aceh, North Sumatra, West Sumatra, Riau, Riau Islands, Jambi, Bengkulu, South Sumatra, Bangka Belitung, Lampung, Special Capital Region of Jakarta, Banten, West Java, Central Java, Special Region of Yogyakarta, East Java, Bali, West Nusa Tenggara, West Kalimantan, Central Kalimantan, South Kalimantan, East Kalimantan, North Kalimantan, North Sulawesi, Gorontalo, Central Sulawesi, Southeast Sulawesi, South Sulawesi, and West Sulawesi.
In accordance with the provisions of Presidential Regulation Number 104 of 2007 on Supply, Distribution, and Pricing of 3-kg Liquefied Petroleum Gas, the supply and distribution of 3-kg LPG is only allotted for households and micro businesses.
In addition, the household group in question is consumers who have resident legality, who use kerosene for cooking within the household and who do not have a gas stove. As for micro-enterprises, namely consumers with productive businesses owned by individuals who have resident legality, that use kerosene for cooking within the micro-enterprises and do not have gas stoves.
Furthermore, other users of 3-kg LPG in accordance with Presidential Regulation Number 38 of 2019 on the Provision, Distribution, and Pricing of 3-kg Liquefied Petroleum Gas for Fishing Vessels for Target Fishermen and Water Pumping Machines for Target Farmers are target fishermen and target farmers.
Target fishermen are people whose livelihood is catching fish to meet the needs of daily life who owns a fishing vessel with a maximum size of 5 gross tons (GT) and uses a propulsion engine with a maximum power of 13 HP, while target farmers are people who have agricultural land with a maximum area of 0.5 hectares, except for transmigrants, who have agricultural land with a maximum area of 2 hectares and conduct their own crop or horticulture farming business and have a water pumping machine with a maximum power of 6.5 HP.
Tutuka also underscored that the Government prohibits businesses/consumers to buy subsidized 3-kg LPG, including restaurants, hotels, laundry, batik, livestock, agricultural (not included in the provisions of Presidential Decree Number 38 of 2019 and those that have not taken part in the conversion program), tobacco farming and welding service businesses. (PR of ESDM Ministry/UN) (GWH/EP)