Thursday, July 24, 2025
No Result
View All Result
Indonesia Sentinel
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science
No Result
View All Result
Indonesia Sentinel
No Result
View All Result
ADVERTISEMENT
Home Economic

Indonesia Investigate Pertamina Over Alleged LPG Sales Monopoly, Reap 10-Folds Profit

by Raidi
2025-03-11
in Economic
A A
Pertamina LPG Monopoly

LPG Gas Cylinder (Pinterest)

Share on FacebookShare on TwitterShare on Whatsapp
ADVERTISEMENT

Jakarta, Indonesia Sentinel — The Indonesian Business Competition Supervisory Commission (KPPU) has officially launched a preliminary investigation into alleged monopoly practices in the sale of non-subsidized Liquefied Petroleum Gas (LPG) in the midstream market by PT Pertamina Patra Niaga (PT PPN).

KPPU agreed to investigate the case involving this state-owned enterprise (BUMN) during a commission meeting on March 5, 2025.

“KPPU has taken the initiative to start a preliminary investigation into suspected monopoly practices,” said KPPU Deputy for Research and Advocacy, Taufik Ariyanto, in a written statement on Sunday, March 9, 2025, as reported by Tempo.

RelatedPosts

AI as Indonesia’s Future Assets for Massive Digital Economy Growth

Indonesian Police Uncover Rp105 Billion International Crypto Investment Scam

The preliminary investigation, based on KPPU’s research, will focus on gathering evidence related to alleged violations of Article 17 of Law No. 5 of 1999 regarding the Prohibition of Monopolistic Practices and Unfair Business Competition.

ADVERTISEMENT

Alleged LPG Monopoly

Since last year, KPPU has been conducting an analysis of non-subsidized LPG sales in Indonesia. The commission suspects that a business entity is monopolizing the sale of non-subsidized LPG in the midstream market, specifically in the non-PSO (Public Service Obligation) bulk LPG segment for repackaging.

Taufik stated that the alleged monopoly includes price manipulation. “By selling at high prices and enjoying supernormal profits,” he said.

KPPU believes that the high prices of non-subsidized LPG have driven many consumers to switch to subsidized LPG or the 3-kilogram packaged variant. In its study, the commission has been examining the pricing structure of the sector, particularly from upstream to downstream.

Read Also:

Seven Suspects Named in Pertamina Corruption Case, State Losses Over Rp193 Trillion

Currently, the sale of subsidized LPG under the Public Service Obligation (PSO) program is managed by PT Pertamina Patra Niaga. The state-owned company controls more than 80 percent of domestic and imported LPG supplies.

PT Pertamina Patra Niaga also sells non-subsidized LPG under the BrightGas brand. Additionally, it supplies bulk LPG to other companies, including BlueGas and PrimeGas, which manufacture non-subsidized LPG cylinders.

Unfair Profit 

In 2024, KPPU found that the sale of non-subsidized LPG yielded extraordinarily high profits, around ten times the profit margin of subsidized LPG sales amounting to approximately Rp1.5 trillion ($95 million).

“KPPU suspects exclusive and exploitative behavior by PT Pertamina Patra Niaga through the sale of LPG at higher prices to downstream consumers, who are also its direct competitors in the non-subsidized LPG market,” Taufik said.

KPPU contends that PT Pertamina Patra Niaga’s non-subsidized LPG sales potentially violate Article 17 of Law No. 5 of 1999 regarding monopoly. These alleged violations has lead to the significant rise of non-subsidized LPG prices, discouraging consumers from purchasing it and instead opting for subsidized LPG.

This situation places additional strain on the state budget, increases the risk of misdirected LPG subsidies, and exacerbates Indonesia’s reliance on LPG imports, Taufik explained.

 

(Raidi/Agung)

Tags: GasIndonesia newsKPPULPGMonopolyPertamina
ADVERTISEMENT

Related Posts

Indonesia Continue Negotiations with U.S., Secure 0% Import Tariffs on Several Essential Commodities

2025-07-22

Jakarta, Indonesia Sentinel -- The Indonesian government is continuing negotiations with the United States in an effort to secure zero...

Trump Tariffs

Indonesia to Buy 50 Boeing in a Deal to Avoid Trump 32% Tariffs

2025-07-22

Jakarta, Indonesia Sentinel -- Indonesia has agreed to purchase 50 Boeing aircraft from the United States as part of a...

Benchmark Interest Rate

Bank Indonesia Cuts Benchmark Interest Rate to 5,25% in July 2025

2025-07-21

Jakarta, Indonesia Sentinel -- Bank Indonesia has decided to lower its benchmark interest rate, known as the BI Rate, by...

Trump Tariff

Trump Announces 19% Tariff on Indonesian Imports, While U.S. Gains Full Access to Indonesian Resource

2025-07-17

Jakarta, Indonesia Sentinel -- U.S. President Donald Trump announced a new 19% import tariff on goods from Indonesia on Tuesday...

E-Commerce Tax

Indonesia Mandates E-Commerce Platforms to Collect Income Tax from Online Sellers

2025-07-16

Jakarta, Indonesia Sentinel -- Indonesia’s Finance Minister Sri Mulyani Indrawati has officially issued a regulation requiring e-commerce platforms to collect...

coal benchmark price

Indonesia Set July Coal Benchmark (HBA) Price at $107.35 per metric ton, Raises Nearly 9%

2025-07-15

Jakarta, Indonesia Sentinel -- Indonesia’s government has raised its coal benchmark price (Harga Batubara Acuan or HBA) for the first...

Tariff Negotiations

Indonesia to Resume Tariff Negotiations with U.S. Following 32% Reciprocal Tariff

2025-07-11

Jakarta, Indonesia Sentinel -- Indonesia is set to resume trade negotiations with the United States over the next three weeks,...

Copper Imports Tariff

Trump Proposes 50% Tariff on Copper Imports, Sending Prices to Record Highs

2025-07-11

Jakarta, Indonesia Sentinel -- President Donald Trump announced plans Tuesday to impose a 50% tariff on all copper imports into...

2026 Macroeconomic Assumptions

Indonesia Sets 2026 Macroeconomic Assumptions for Draft State Budget

2025-07-08

Jakarta, Indonesia Sentinel -- Indonesia’s government and parliament have agreed on the 2026 Macroeconomic Assumptions, which will serve as the...

Indonesia Foreign Reserves

Indonesia Foreign Reserves Rise to $152.6 Billion in June, Central Bank Reports

2025-07-08

Jakarta, Indonesia Sentinel -- Indonesia foreign exchange reserves rose slightly to $152.6 billion at the end of June 2025, according...

Load More
Next Post
Jakarta extreme weather

Jakarta Issues Extreme Weather Alert on March 11-20, Warns Residents of Potential Severe Flooding

Popular

  • Mentawai Tribe

    Mentawai Tribe Tooth Sharpening Tradition as a Symbol of Beauty, Culture, and Sacrifice

    0 shares
    Share 0 Tweet 0
  • Suku Mante, Mysterious Tribe Living in the Vast Forests of Aceh

    0 shares
    Share 0 Tweet 0
  • Indonesia’s Life Expectancy Rises to 74.15 Years in 2024, Statistics Agency Reports 

    0 shares
    Share 0 Tweet 0
  • TikTok Shop GMV 2024 Hits $32.6 Billion, Indonesia Second Largest Contributor

    0 shares
    Share 0 Tweet 0
  • Indonesia Boasts an Outstanding Number of Islands, How Many?

    0 shares
    Share 0 Tweet 0

Recommended

Indonesia’s Apparel and Footwear Exports to U.S. Reach $1.85 Billion in Q1 2025

3 months ago
Silaturahmi tunnel

Hystory of Silaturahmi Tunnel, A Symbol of Religious Unity Between Istiqlal Mosque and Jakarta Cathedral

11 months ago
ADVERTISEMENT

Indonesiasentinel.com is an independent online news portal committed to providing accurate, in-depth, and up-to-date news about Indonesia. Since 2021, we have been a trusted source for millions of readers seeking relevant and reliable news.

Part of:

Information Page

  • About
  • Editorial
  • Privacy Policy
  • Disclaimer
  • About
  • Editorial
  • Privacy Policy
  • Disclaimer

Contact

  • contact@indonesiasentinel.com
© 2021 Indonesia Sentinel

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science

© 2024 Indonesia Sentinel