ESDM to Ease Licensing for 3-Kilogram LPG Distribution via 'Red and White' Village Cooperatives

The Ministry of Energy and Mineral Resources (ESDM) will facilitate licensing arrangements and the distribution governance of 3-kilogram LPG for the Red and White Village/Neighbourhood Cooperatives (KDKMP).

“Support from the Ministry of ESDM is already included in the draft presidential regulation. It regulates the distribution governance of 3-kilogram LPG and facilitates licensing ease as well as other matters,” said Laode Sulaeman, Director General of Oil and Gas at the Ministry of ESDM, speaking after a press conference on the draft Presidential Regulation on the Governance of KDKMP in Jakarta on Tuesday (28/7/2026).

Laode said the Ministry of ESDM is taking a role in the distribution of 3-kilogram LPG because the Red and White Village/Neighbourhood Cooperatives will be involved as distributors of the subsidised LPG.

“(ESDM’s role is) in the distribution of 3-kilogram LPG, which is subsidised,” he said.

As conveyed by the Coordinating Minister for Food, Zulkifli Hasan, the Red and White Village/Neighbourhood Cooperatives are government infrastructure for distributing subsidised goods and government assistance. For this reason, Zulhas, as he is familiarly known, assured that the cooperatives would not put local stalls or similar micro, small and medium enterprises (MSMEs) owned by residents out of business.

The government is targeting around 25,000 Red and White Village/Neighbourhood Cooperatives to begin operating between August and September 2026. That figure is targeted to increase to 35,862 units by the end of 2026.

Zulhas expressed hope that the Presidential Regulation governing the management of KDKMP could be completed this week to serve as the operational basis for the programme.

“Hopefully the governance arrangements will be finalised this week so that everyone has the same reference,” said Zulhas.