Relaxation of Quota Control Aims to Overcome Changes in Consumption Patterns, Says BPH Migas

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 368.Pers/04/SJI/2021

Date: 19 October 2021

Relaxation of Quota Control Aims to Overcome Changes in Consumption Patterns, Says BPH Migas

The government guarantees the availability of fuel oils until local gas stations, Head of Downstream Oil and Gas Regulatory Agency (BPH Migas) Erika Retnowati, has said in a coordination meeting with Business Entities that are assigned to distribute Solar diesel, namely PT Pertamina Patra Niaga and PT AKR Corporindo, Tbk., on Tuesday (19/10), at the office of BPH Migas.

According to Law Number 22 of 2001 on Oil and Gas, BPH Migas has the duties to regulate and supervise the availability of oil fuels as determined by the government in all regions in Indonesia. In regulating the availability and distribution of oil fuels, BPH Migas sets quotas for Certain Oil Fuel Types (JBT), which are subsidized Solar diesel and kerosene, and Special Assignment Fuel Type (JBKP), which refers to Premium gasoline, for each regency/city so that subsidized fuels can be distributed on targets and in the right amount.

BPH Migas is constantly evaluating and supervising the quota of subsidized Solar diesel. The evaluation involves Pertamina and AKR as the field executors as well as regional governments.

At the coordination meeting, PT Pertamina (Persero) explained there was an increase in fuel consumption, especially of subsidized Solar diesel, as community activity, economic growth, and people mobility in several areas were surging as a result of successful handling of the Covid-19 pandemic by the government and the easing of community activity restrictions (PPKM).

"Due to changes in consumption patterns, BPH Migas immediately took action by evaluating the arrangement of the subsidized Solar quota. Taking into account various issues including the needs of the community, we have issued a letter on relaxation for the distribution of subsidized Solar, which gives the authority to PT Pertamina Patra Niaga to adjust the quota in areas/sectors which are under and over quota as long as the adjustment does not exceed the national quota of 15.8 million kiloliters. Of course, the relaxation will be monitored by BPH Migas," said Erika.

To carry out supervision, BPH Migas has issued a circular to distributing agents about the allocation of subsidized fuels and has encouraged the digitization of gas stations as a monitoring facility by Pertamina.

For the record, subsidized Solar can only be used for a number of purposes which include land transportation, namely by private vehicles with a black registration plate (TNKB) and white writing, vehicles with a yellow TNKB and black writing, except for six-wheeler trucks that are used to transport plantation and mining products, ambulances, hearses, fire engines, garbage trucks; water transportation with a recommendation letter from the relevant regional government agencies (SKPD), Indonesian-flagged cargo ships and Indonesian-flagged passenger ships, people's shipping ships/pioneer ships; rail transportation with quota determination from BPH, agricultural businesses, micro businesses, fisheries businesses, and public services in the forms of crematories, places of worship, nursing homes, orphanages, and types C and D hospitals with a recommendation letter from the relevant SKPD.

"In performing field supervision, BPH Migas cooperates with the Indonesian Armed Forces (TNI) and the Indonesian Police (POLRI). We would like to thank everyone who helped enforce the law against the misuse of Solar diesel, which is one of the factors causing shortages of diesel fuel for people who need it," Erika concluded. (IY)

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