Witnessing Assignment Decision Handover, Minister of EMR: No More Misappropriation

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 724.Pers/04/SJI/2019

Date: 30 December 2019

Witnessing Assignment Decision Handover, Minister of EMR: No More Misappropriation

Minister of Energy and Mineral Resources (EMR) Arifin Tasrif witnesses the handover of the Decision on the Assignment and the Quota of Certain Fuels (JBT) and Assignment Fuels (JBKP) 2020 to Business Entities Receiving the Assignment and Governors throughout Indonesia, today, Monday (30/12) in Jakarta.

In his remarks, Minister Arifin expects assignment receivers to carry out their duties well, because distributing Subsidized Fuels to the needy is a realization of the government's concern.

"Every year, we distribute fuels, especially Subsidized Fuels or Assignment Fuels. This activity is a form of the government's concern for the needy, especially our countrymen living in the 3 T regions (outermost, frontline, and disadvantaged)," said Arifin.

Although the government has tried its best, Subsidized Fuels are sometimes lacking or exceed the quota set by the House of Representatives and the government due to a number of factors, for example misappropriation. For this reason, Arifin calls for joint monitoring, in addition to nozzle digitalization.

"To reduce or eliminate misappropriation, we can do two things; first, we urge the community and the business to jointly monitor fuels distribution, and second, we use the technology (nozzle digitilization) which is currently half done and will be fully completed in 2020," Arifin continued.

The misappropriation of Subsidized Fuel occurs in plain sight, done openly; even Minister Arifin admits he once saw it himself.

"I saw it myself of how the misappropriation practices are done especially in rural areas, how the refueling is done in plain sight, at a refueling station, then the fuels are handed over to somebody else across the street and then the first person goes back to the station to refuel again," said Arifin.

In terms of the over-quota of Subsidized Fuels, Head of Regulating Agency of Downstream Oil and Gas (BPH Migas) Fanshurullah Asa proposes some revisions to Presidential Regulation Number 191 of 2014 on Supply, Distribution, and Retail Price of Oil Fuels.

"In July 2019, we officially proposed some revisions to Presidential Regulation Number 191 of 2014. We proposed that the attachment to the Regulation be revised; first, six-wheeled vehicles could not use Subsidized Fuel; second, passenger trains and freight trains were not given fuel subsidies. The third proposal was to eliminate the word spool from small-scale fish farming, and the fourth proposal was coming from former Minister of Marine Affairs Ibu Susi to give Subsidized Fuels only to fishing vessels of below 10 GT," explained Fansurullah.

Fanshurullah believes the proposal can reduce the potential for the over-quota of Subsidized Fuels like what occurred this year. (IY)

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

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