Pertamina Boss Estimates 3 Kg Elpiji Quota Will Be Broken

JAKARTA - PT Pertamina (Persero) estimates that the use of 3 kilograms of LPG in 2023 will increase by up to 8.28 million metric tons (MT).

President Director of PT Pertamina (Persero) Nicke Widyawati revealed, for the quota target set in 2023 is 8 million MT.

"For 2023, we project that by the end of the year we will exceed the quota of 8.28 million MT," Nicke said in a Hearing Meeting with Commission VII DPR RI, Wednesday, August 30.

This amount is based on the calculation from buan to the moon and there is still a Christmas and New Year holiday moment which causes demand for subsidized gas to increase dramatically. This is in line with the trend of increasing LPG consumption every big day or national holiday.

For this reason, on the same occasion, Nicke asked for support from Commission VII of the DPR RI regarding the realization of the subsidy budget with the assumption that Contact Price Aramco (CPA) was set in the APBN higher than the realization so that even if there was an overquatomy it would not increase subsidies.

"There are loopholes that we can use to propose overquate approval by not adding subsidized allocations. Maybe we need the support of Commission VII," continued Nicke.

For information, the realization of 3 kg LPG absorption in 2022 will reach 7.8 million MT, while the realization as of July 2023 is 4.68 million MT.

Just so you know, the estimated 3 kg LPG subsidy requirement in 2023 is IDR 92.18 trillion with a 2023 distribution prognosis of 8.28 million MT and the assumption of CP Aramco in Sept to December according to the APBN assumption of 916 US dollars per MT and an August exchange rate of IDR 15,400.