Airlangga Announces Cheap Fuel for Fishermen, Valid for 6 Months

The government is preparing new incentives for the fisheries sector by providing a special price for fuel oil (BBM) to fishing entrepreneurs operating vessels sized 30 to 200 gross tons (GT). This policy is expected to reduce operational costs, maintain business sustainability, and increase the competitiveness of the national fishing industry. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the agreed fuel price for this group of fishermen is Rp15,000 per litre. “Because these fishing entrepreneurs need to be given a special price, it was discussed that the agreed price is Rp15,000 per litre,” Airlangga said during a press conference with Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia following a limited meeting led by President Prabowo Subianto in Bogor on Monday. Airlangga explained that this policy is a direct directive from President Prabowo Subianto to assist fishing businesses using vessels sized 30 to 200 GT. Previously, fishermen with vessels under 30 GT had received B50 fuel at a subsidised price of Rp6,800 per litre. Meanwhile, fishing entrepreneurs operating larger vessels still used non-subsidised fuel, the price of which had reached around Rp21,300 per litre. Through this new policy, the government is providing a special price of Rp15,000 per litre to give fishing businesses cost certainty amid energy price fluctuations. Airlangga revealed that, based on the average domestic diesel production cost, the economic price of non-subsidised fuel is currently around Rp18,600 per litre. Thus, there is a difference of approximately Rp3,600 per litre that will be covered by the Plantation Fund Management Agency (BPDP). This measure does not burden the State Revenue and Expenditure Budget (APBN). For the initial phase, the government has also prepared a quota of 400,000 tonnes, which will be valid for the next six months. “Therefore, the Minister of ESDM will issue regulations related to this subsidy, where the subsidy of approximately Rp3,600 will be financed by the BPDP,” Airlangga explained. The government will also ensure the policy is implemented on target. The Ministry of ESDM will prepare the regulations as the legal basis for the policy, while the distribution points will be coordinated with the Ministry of Marine Affairs and Fisheries to ensure effective fuel distribution and prevent potential misuse.