Jakarta, CNBC Indonesia - The government plans to issue several\npolicies related to controlling energy subsidies, particularly for 3 kg\nLPG, in 2027. This is being done to make energy subsidy distribution\nmore targeted.<\/p>\n
Based on the 2027 State Budget Financial Note, the government plans\nto transform the distribution of 3 kg LPG cylinder subsidies to be more\ntargeted and also evaluate the retail selling price of 3 kg LPG in line\nwith economic conditions and public purchasing power.<\/p>\n
\u201cThe government will also transform the 3 kg LPG cylinder subsidy\npolicy from a commodity-based subsidy to a beneficiary-based subsidy,\u201d\nthe 2027 State Budget Financial Note stated, quoted on Monday\n(31\/8\/2026).<\/p>\n
In the 2027 State Budget Financial Note, efforts that have been made\nto implement the LPG subsidy transformation policy include preparing a\ndatabase used as a reference for distributing 3 kg LPG cylinders, such\nas developing consumer data collection features based on the Population\nIdentification Number, matching data with the Extreme Poverty\nEradication Acceleration Targeting data, and preparing 3 kg LPG\ndistribution infrastructure.<\/p>\n
In line with this, starting January 2024, purchases of 3 kg LPG\ncylinders at official agents can only be made by users who have been\nregistered in a web-based system and\/or application.<\/p>\n
\u201cThus, 3 kg LPG cylinder users can be registered to support\nIndonesia\u2019s readiness towards equitable 3 kg LPG cylinder distribution,\u201d\nit said.<\/p>\n
Efforts to control subsidies are also triggered by energy subsidies\nthat continue to swell every year, including an estimated surge in\nsubsidies next year.<\/p>\n
Based on data from the 2027 State Budget Financial Note, in 2026,\nenergy subsidies are estimated to reach Rp 227.3 trillion, up 19.6% from\nenergy subsidies in 2025 which were recorded at Rp 185.2 trillion, and\nalso higher than 2024\u2019s Rp 177.6 trillion.<\/p>\n
In fact, in 2027 energy subsidies are estimated to jump again to Rp\n272.9 trillion.<\/p>\n
Of the estimated energy subsidy of Rp 227.3 trillion in 2026, the 3\nkg LPG subsidy is estimated to reach Rp 90.4 trillion. In 2027, the 3 kg\nLPG subsidy is even estimated to rise again to Rp 114.1 trillion.<\/p>\n
The subsidy policy in 2027 is stated to be directed at \u201ccontinuing\nefforts to transform the 3 kg LPG cylinder subsidy to be targeted,\nbecoming beneficiary-based and integrated with accurate beneficiary\ndata.\u201d<\/p>\n
The policy includes, among other things, collecting data on 3 kg LPG\ncylinder users based on technology so that 3 kg LPG cylinder users are\nusers who have been registered and listed in the National Socio-Economic\nData.<\/p>\n
\u201cThe implementation of this transformation is carried out in stages\nby considering data readiness, infrastructure, and the economic and\nsocial conditions of the community,\u201d it added.<\/p>\n
The calculation of the 3 kg LPG cylinder subsidy budget in the 2027\nState Budget uses an assumption of 3 kg LPG cylinder volume of 8.94\nmillion metric tons. This means there is an increase from the 3 kg LPG\nquota in 2026 which was set at 8 million metric tons.<\/p>\n
LPG Consumers According to Decile<\/p>\n
In line with this policy, the Ministry of Energy and Mineral\nResources also plans to tighten the distribution of 3 kg LPG by limiting\nthe community groups that can purchase subsidised LPG based on welfare\ndeciles.<\/p>\n
Director General of Oil and Gas at the Ministry of Energy and Mineral\nResources Laode Sulaeman said the policy is needed so that 3 kg LPG\ndistribution is more targeted. The government is currently discussing\nthe application of welfare or decile data to determine community groups\nentitled to receive LPG subsidies.<\/p>\n
\u201cSo, that\u2019s why we are currently intensifying conversion. Conversion,\nthen the class that gets it is regulated to be more targeted. The decile\nwill be regulated for LPG. Not only for fuel,\u201d Laode said at the House\nof Representatives building, quoted on Thursday (27\/8\/2026).<\/p>\n
According to him, his party will also discuss the use of the data\nwith Statistics Indonesia and PT Pertamina. The discussion is a\nfollow-up to a meeting between the Minister of Energy and Mineral\nResources and the Minister of Finance some time ago.<\/p>\n
\u201cThat is one of the things we will discuss with BPS, Pertamina, in\nimplementing the results of the meeting between the Minister of Energy\nand Mineral Resources and the Minister of Finance,\u201d he said.<\/p>\n
Previously, PT Pertamina Patra Niaga and the Directorate General of\nPopulation and Civil Registration of the Ministry of Home Affairs signed\na Cooperation Agreement on Granting Access Rights and Utilisation of\nPopulation Data in Services within the Scope of PT Pertamina Patra\nNiaga.<\/p>\n
The cooperation is expected to strengthen the data verification and\nvalidation process to support more targeted distribution of subsidised\nenergy. This cooperation agreement also supports the implementation of\nMinister of Energy and Mineral Resources Decree Number 37 of 2023\nconcerning Technical Guidelines for the Transformation of Targeted LPG\nSubsidies, as well as being the basis for system integration that has\nbeen prepared by Pertamina Patra Niaga for NIK validation in 3 kg LPG\ndistribution.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/3-kg-lpg-distribution-scheme-to-be-changed-when-will-it-take-effect-1788166283", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }