Tightening Subsidized Fuels Monitoring, Digital Nozzle to be Effective in June 2020

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 072.Pers/04/SJI/2020

Date: 15 February 2020

Tightening Subsidized Fuels Monitoring, Digital Nozzle to be Effective in June 2020

The government makes sure misappropriation of subsidized fuels will be monitored by installing digital nozzle at refueling stations which will become effective in June 2020.

Head of Downstream Oil and Gas Regulating Agency (BPH Migas) Fansurullah Asa confirmed that PT Pertamina (Persero) and PT Telkom (Persero) had given their commitments to the use of information technology as an effective measure to control subsidized fuels distribution.

"Minister of EMR, President Director of Pertamina, and President Director of Telkom have given their commitments that effective June 2020, IT nozzles that use CCTV, ones that record vehicle's plate number, will be used; please wait," said Ifan, Fansurullah's nickname, to Commission VII of the House of Representatives in Jakarta, Wednesday (12/2).

Digital nozzles, continued Ifan, was targeted for installation at 5,518 refueling stations across Indonesia. Until 10 February 2020, as many as 4,062 stations have been installed Automatic Tank Gauge (ATG), 2,919 stations installed Electronic Data Capture (EDC), and 1,138 stations capable to record vehicle's plate number manually by using EDC.

Minister of EMR has also instructed Pertamina to make the electronic recording of Certain Types Fuels (JBT) sales according to the rules of Presidential Regulation Number 191 of 2014 on Supply, Distribution, and Retail Sale Price of Fuels. This instruction was stated in ministerial letter Number 2458/10/MEM.S/2018 of 22 March 2018.

According to the Budget Statement of Draft State Budget of Fiscal Year 2020, the quota of Certain Types Fuels or subsidized fuels is 15.87 million Kilo Liter (KL), consisting of 15.31 million KL of Solar diesel oil and 0.56 million KL of kerosene. Pertamina gets a quota of 15.07 million KL of Solar, while 234 thousand KL is for PT AKR Corporindo. This year's quota is up by 5.03 percent than the 2019's quota of 15.11 million KL.

Throughout 2019, BPH Migas discovered 404 cases of subsidized fuels misappropriation. To anticipate misappropriation, in addition to digitalization, the government has revised Presidential Regulation Number 191 of 2014, changing the types of consumers who use fuels. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

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