Jakarta, Indonesia Sentinel — Indonesia’s Ministry of Energy and Mineral Resources (MEMR) is reforming the distribution of 3-kilogram liquefied petroleum gas (LPG), commonly known as “melon gas” due to its green canister. The initiative aims to ensure subsidized LPG reaches intended recipients at regulated prices, minimizing inefficiencies and unauthorized markups.
Integrating Retailers into the Formal Supply Chain
Deputy Minister Yuliot announced that the new system will require existing LPG retailers to register as official distribution agents, or pangkalan. “We’re not eliminating retailers; we’re formalizing them. They must obtain a Business Identification Number (NIB) through the Online Single Submission (OSS) system,” Yuliot explained at a press briefing.
The transition begins February 1, with a one-month grace period allowing current retailers to continue operations while completing their registration. After this period, compliance with the new regulations is mandatory to maintain supply access.
Simplifying the Supply Chain
The reform focuses on streamlining the LPG supply chain. By converting retailers into pangkalan, the government aims to reduce distribution layers, limiting price distortions caused by intermediaries. “This isn’t about creating barriers. We’re simplifying the supply chain to enhance efficiency and transparency,” Yuliot emphasized.
The system integrates with Indonesia’s national population database, managed by the Ministry of Home Affairs. This linkage allows individuals to register using their National Identification Number (NIK), improving accountability and reducing fraud risks.
How to Register via OSS
The OSS platform, central to Indonesia’s business licensing reforms under the Job Creation Law (Law No. 6/2023), facilitates risk-based business licensing. The digital system streamlines applications for entrepreneurs, government bodies, and special economic zones.
For those seeking to become licensed LPG distributors, the OSS registration process includes:
- Access the OSS Portal: Visit https://oss.go.id and select “Register/Login.”
- Choose Registration Type: Select individual or business registration.
- Enter Required Information: Provide personal data, including the NIK for individuals or company details for businesses.
- Complete Captcha Verification: Confirm you’re not a robot.
- Submit and Activate: Submit the application, confirm registration via email, and receive OSS credentials upon activation.
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Policy Goals and Implications
Indonesia’s subsidized LPG program is crucial for low-income households, but inefficiencies and distribution leakages have been persistent issues. The government aims to:
- Ensure Pricing Compliance: Curb unauthorized price hikes.
- Enhance Transparency: Enable data-driven monitoring.
- Improve Targeting: Direct subsidies to intended recipients.
While the reforms are designed to strengthen distribution integrity, challenges remain. Retailers must adapt to administrative changes, and ongoing monitoring will be critical to ensure the system’s effectiveness.
(Becky)
