Purbaya discusses technology for targeted subsidised fuel distribution with Pertamina CEO

Finance Minister Purbaya Yudhi Sadewa revealed that he is discussing the use of technology to ensure the distribution of subsidised fuel and 3 kg LPG is better targeted. The discussion took place during a meeting with Pertamina CEO Simon Aloysius Mantiri at the Ministry of Finance office. “The main point is, I want to know what technology will be used to limit, or rather, to ensure the subsidy is right on target,” Purbaya said in Jakarta on Friday. Purbaya explained that the government wants to ensure that subsidised fuel is enjoyed by the people who are entitled to it, so that the distribution volume can also be controlled. He noted that currently, subsidised fuels like Pertalite and 3 kg LPG are still widely used by upper-middle-class groups. “Everyone, even the wealthy, can buy Pertalite or 3 kg LPG, for example. They have technology, I want to see what the technology is like, how it will be applied,” Purbaya stated. When asked about the potential for raising subsidised fuel prices amid rising global crude oil prices, Purbaya confirmed that there were no discussions on the matter and assured that subsidised fuel prices would be maintained at their current level. “No. We are ensuring the subsidy is right on target, so the volume can be controlled. As for other matters, we will wait to see what Pertamina proposes, I will review it later,” he said. Previously, the government has been preparing a new distribution scheme for subsidised fuel to ensure it is better targeted, which includes restrictions on the purchase of Pertalite and subsidised diesel or Biosolar. The restrictions will be based on vehicle type and engine capacity. In line with this, the Ministry of Energy and Mineral Resources is revising Presidential Regulation Number 191 of 2014 concerning the Supply, Distribution, and Retail Price of Fuel. Additionally, the government is preparing a transformation of the 3 kg LPG subsidy from a commodity-based scheme to a beneficiary-based scheme, where distribution will refer to data from the Acceleration of Extreme Poverty Eradication Targeting and the Integrated Social Welfare Data.