Indonesian Political, Business & Finance News

Government Accelerates Equitable Energy Access in 3T Regions, Expands One-Price Fuel Programme

| Source: CNBC Translated from Indonesian | Energy
Government Accelerates Equitable Energy Access in 3T Regions, Expands One-Price Fuel Programme
Image: CNBC

The Directorate General of Oil and Gas at the Ministry of Energy and Mineral Resources has reaffirmed its commitment to ensuring equitable energy access for all Indonesians, including those in the frontier, outermost, and underdeveloped (3T) regions. This commitment includes discussing proposals to add new locations to the One-Price Fuel (BBM Satu Harga) programme, which aims to guarantee fuel availability and price parity in 3T and border areas.

The programme’s realisation from 2017 to 2024 reached 583 distributor locations, with a target of an additional 226 locations planned for the 2025–2029 period. Diyan Wahyudi, Coordinator for Fuel Prices representing the Director of Downstream Oil and Gas Business Development, stated that the government understands the urgent community need for energy and will evaluate proposals, particularly those from the Kupang Regency administration.

‘We have captured the needs and proposals from the Kupang Regency government. We will conduct an internal evaluation with relevant stakeholders to determine the most appropriate steps to improve energy services for the community,’ Diyan explained. The discussion also explored alternative fuel distribution methods, including the use of transport modes better suited to local conditions. Given Kupang’s geographical characteristics, which include both mainland and island areas, a multimodal distribution scheme is being considered to maintain supply sustainability.

The meeting further addressed the link between fuel supply programmes and other basic infrastructure support, such as road access and transport facilities, which are critical factors in ensuring smooth energy distribution to remote areas. Resolving energy access challenges is seen as requiring cross-sector collaboration and support from various stakeholders.

Kupang Regent Yosef Lede highlighted that several areas, particularly coastal and island regions, still face difficulties in accessing fuel due to limited transport and distribution infrastructure. The challenging geography forces residents to travel long distances to obtain fuel, sometimes resulting in supply shortages. ‘Kupang Regency has the characteristics of a 3T region, an archipelago, and shares a border with Timor Leste, so fuel distribution still faces many obstacles. These conditions cause fuel scarcity, which impacts the community’s economic activities, especially in the agriculture and fisheries sectors,’ Yosef stated.

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