Jakarta, Indonesia Sentinel — The Indonesian government is set to revamp the distribution system for subsidized 3Kg liquefied petroleum gas (LPG) by eliminating retail resellers and channeling supply directly through official distribution points.
Deputy Minister of Energy and Mineral Resources (ESDM) Yuliot Tanjung said the move is part of efforts to streamline LPG subsidies and ensure consumers receive the fuel at government-regulated prices.
“We are restructuring the system to ensure that people purchase LPG at the official price set by the government,” Yuliot said at the ESDM Ministry on Friday, January 31, as reported by CNN Indonesia.
Direct Supply from Pertamina
Under the new distribution system, small-scale retailers selling the 3Kg LPG will be phased out. Instead, all supply will be distributed through official distribution centers directly stocked by state-owned energy firm Pertamina.
To ease the transition, the government is allowing current retailers to become official LPG distributors by obtaining a Business Identification Number (NIB).
“Retailers will be transformed into official distributors. They simply need to register for a Business Identification Number. The registration process is online, so it should be accessible nationwide without any major obstacles,” Yuliot explained.
Ensuring Nationwide Price Uniformity
The government aims to eliminate price disparities caused by middlemen in the distribution chain. With a direct supply system, LPG prices are expected to remain consistent across Indonesia, preventing inflated costs in certain regions.
“By turning resellers into official distributors, we shorten the supply chain and remove unnecessary intermediaries. This ensures that consumers pay fair prices,” Yuliot said.
The government has set a one-month transition period for retailers to register as official LPG distributors. The transitions period for the new system will take effect on February 1, 2025.
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For those who do not yet have a Business Identification Number, Yuliot encouraged them to apply through the Online Single Submission (OSS) system, a government platform for business registration.
“The NIB is issued through OSS. Even individual sellers can register using their national identification number. The system is fully integrated with the Ministry of Home Affairs’ population database,” he added.
With this policy overhaul, the government aims to create a more transparent and efficient 3Kg LPG distribution system, ensuring affordability and accessibility for consumers across Indonesia. As the transition unfolds, authorities will monitor its implementation to address any challenges and ensure a smooth shift to the new system.
(Raidi/Agung)
