BPH Migas and Riau Provincial Government Strengthen Oversight of Subsidised Fuel Distribution
The Downstream Oil and Gas Regulatory Agency (BPH Migas) and the Riau Provincial Government are strengthening oversight of subsidised fuel distribution through enhanced cooperation on control, guidance, and monitoring for consumers in Riau Province. This was marked by the signing of a Cooperation Agreement by BPH Migas Head Wahyudi Anas and Acting Governor of Riau SF Hariyanto in Jakarta on Friday.
BPH Migas Head Wahyudi Anas stated that the cooperation represents a concrete step to optimise fuel distribution oversight to ensure it is on target and in the correct volume. The supervision also covers the issuance of Recommendation Letters based on the X-Star application for non-land transport consumers, such as the agriculture, fisheries, micro, small, and medium enterprises (MSMEs), and public service sectors. This measure is expected to strengthen distribution oversight for Specific Types of Fuel (JBT), or subsidised fuel, and Special Assignment Types of Fuel (JBKP), or compensation fuel.
According to Anas, Riau’s geographical characteristics as a main route across Sumatra cause high mobility of inter-regional logistics vehicles, which has the potential to affect fuel distribution. “Therefore, joint supervision is needed in the distribution of subsidised and compensation fuel to ensure it is on target and in the correct volume so that economic activities run well,” he explained. In addition to high vehicle mobility, BPH Migas has also discovered potential misuse of subsidised fuel distribution in the field, including the use of inappropriate vehicle identities or unroadworthy vehicles. Wahyudi explained that vehicles often referred to as ‘zombie’ vehicles were found purchasing subsidised and compensation fuel using QR Codes. “The identity of these vehicles is unclear and they frequently change number plates to match the QR Code obtained to buy subsidised fuel. We can conduct joint supervision to take action against this,” he asserted.
Through this cooperation, BPH Migas and the Riau Provincial Government are also opening opportunities for data exchange that can support an increase in Regional Original Revenue (PAD), particularly from the Motor Vehicle Fuel Tax (PBBKB) sector. A follow-up work programme will be prepared in more detail as a continuation of the agreement’s implementation. “Hopefully this cooperation can provide optimal benefits for both parties and be implemented well. BPH Migas is ready to collaborate with all provincial governments within the Unitary State of the Republic of Indonesia to ensure the provision and distribution of subsidised and compensation fuel is on target and provides the right benefits to the community, as well as supporting regional economic growth,” he said.
On the same occasion, Acting Governor of Riau SF Hariyanto welcomed the cooperation and expressed hope that strengthened coordination would produce more accurate data to support field supervision. “On behalf of the Riau Provincial Government, we extend our deepest gratitude to the Government and BPH Migas. Hopefully, this cooperation will yield accurate data and serve as evaluation material so that we can conduct joint supervision,” he concluded. The cooperation with Riau Province marks the 25th agreement BPH Migas has established with provincial governments across various regions in Indonesia. This step is part of efforts to strengthen energy distribution oversight so that subsidy benefits are received by entitled communities while supporting regional economic activities.