The Pretext Of Setting 3 Kg Gas Distribution For Energy Subsidy Right Targeted Is Just Bahlil's Trick

A number of residents lined up to buy three kilograms of LPG (kg) cylinders at the official agent in the South Gandaria area, Jakarta, Tuesday (4/2/2025). (ANTARA/Luhfia Miranda Putri/aa)

The Ministry of Energy and Mineral Resources (ESDM) has been in the spotlight for at least the past week. This is because the government issued a policy prohibiting retailers from selling 3 kg LPG gas, thus having a major impact on people at the grassroots level.

A resident in Tangerang was seen spraying the Minister of Energy and Mineral Resources Bahlil Lahadalia while monitoring the distribution of gas at a base in Cibodas District, Tangerang City, Tuesday (4/2/2025).

"I'm cooking now, sir, I just live for the sake of gas. It's not a matter of queuing the gas, our children are hungry, they need food, they need life, the logic goes, sir!" protested the residents to Bahlil with a face full of horror.

The government implemented a policy that sales of 3 kg LPG gas were only carried out at Pertamina's official base, aka not arriving at retailers with the highest retail price (HET) which had been determined starting January 1, 2025.

Bahlil repeatedly emphasized that this policy was made to maintain the selling price in accordance with HET and ensure that the 3 kg gas subsidy was right on target.

However, the ban on retailers selling melon gas resulted in long lines at Pertamina's official bases. This long queue is also suspected to be the cause of a housewife's death. It is suspected that she was exhausted while queuing for 3 kg gas in West Pamulang.

This is not the only time the government intends to organize subsidized gas distribution to make it more targeted. In early 2024, Tutuka Ariadji while still serving as Director General of Oil and Gas at the Ministry of Energy and Mineral Resources proposed a revision of Presidential Regulation (Perpres) Number 104 of 2007 concerning Provision, Distribution, and Determination of 3 kg Gas Cylinder LPG Prices so that LPG subsidies are right on target.

This desire is in line with the findings of the Supreme Audit Agency in 2023 regarding the misuse of 3 kg LPG subsidies. However, until 2024 ends, the hilal for the revision of regulations regarding the distribution of 3 kg LPG subsidies has not yet emerged.

After selling 3 kg of gas in the last few days, President Prabowo Subianto immediately ordered the Minister of Energy and Mineral Resources Bahlil Lahadalia so that 3 kg of gas could still be sold by retailers.

This information was conveyed by the Daily Chair of the Gerindra Party, Sufmi Dasco Ahmad.

"The president has instructed the Ministry of Energy and Mineral Resources to reactivate existing retailers to sell as usual," said Dasco at the Senayan parliament complex, Jakarta.

Previously, the 3 kg gas purchase policy could only be carried out in Pertamina's official agents because of the price game at the retail level. Bahlil Lahadalia explained that the price of 3 kg of gas should be IDR 36 thousand per tube. However, due to subsidies from the state, the price of melon in the community should not be more than IDR 15 thousand.

But what happens on the ground is not the case. The price of 3 kg of gas at the retail level varies from Rp. 21 thousand to Rp. 25 thousand.

Regarding the price at the retail level which is considered much higher than it should be, economist from the Center of Economic and Law Studies (Celios) Nailul Huda said that the selling price of 3 kg of gas at Rp. 18 thousand at the agent level and Rp. 21 thousand to Rp. 23 thousand at the retail level was still reasonable.

Because, the economic price of melon gas recorded by the Ministry of Finance is IDR 42,750 per cylinder. According to Huda, subsidized goods sold below the economic price are certain that there will be excess demand (excess demand).

Therefore, in order to avoid scarcity, the government should regulate so that the distribution of subsidized goods is right on target. If not, the government must increase the stock of goods, but the consequences are an increase in the budget.

The first method is difficult to do, because the poverty data is not synchronous and not necessarily on target. There is an effect of trading in poor status and illegal 3 kg gas. So the second way should be taken by supplying more," said Huda.

However, with budget constraints due to the large number of populist programs in the Red and White Cabinet (KMP), the government cannot allocate more budget to increase the subsidy of melon gas.

For information, in the 2025 State Revenue and Expenditure Budget (APBN), the gas subsidy for melon was agreed at IDR 87.6 trillion. This figure is higher than the 2024 ceiling which is valued at IDR 85.6 trillion.

From this budget, the 3 kg gas subsidy volume that must be distributed by the government is 8.17 million tons, with the agreed subsidy being IDR 30 thousand per cylinder. So that the basic price of 3 kg gas becomes IDR 12,750 per tube, and added with transportation costs that each region can vary.

For this reason, the obligation to buy 3 kg of gas only in Pertamina's official agents actually makes the transportation costs that must be borne by the community increase, it could even be Rp. 3,000-Rp. 4,000 more than buying gas at retailers.

On the other hand, according to Huda, the existence of retailers is actually enough to help the government distribute 3 kg of gas subsidies to the lowest communities, especially those who live quite far from official bases.

Instead of closing the retailer's participation in the distribution of melon gas, the government should evaluate the performance of the Ministry of Energy and Mineral Resources, especially the Minister of Energy and Mineral Resources as a regulator who cannot distribute this vital need to the public on target.

The 3 kg gas scarcity is a failure of the government to provide goods according to the demand and distribution of goods. The government should not be late in acting, especially before Ramadan and Eid al-Fitr, demand will increase. If there is still a shortage, people will be harmed," said Huda.

The policy to ban the sale of 3 kg gas at the base has also drawn various speculations, including the circulation of photos of LPG products with 3 kg of non-subsidized pink or Bright gas which is said to replace melon gas.

However, PT Pertamina Patra Niaga denied the news, and confirmed that currently Bright gas products are only available in 5.5 kg and 12 kg packaging.

Meanwhile, Trisakti University Public Policy Observer Trubus Rahadiansyah suspects that the government's policy to ban the sale of 3 kg gas in retailers is because it wants to reduce the subsidy of melon gas.

The government is currently struggling with many populist programs that require a large budget, including the free nutritious food program (MBG).

"The direction is that the possibility of subsidy efficiency is in the interest of President Prabowo Subianto's flagship program, namely MBG, so that other subsidies must be reduced," Trubus said when contacted by VOI.

"So the claim that the sale of 3 kg of gas can only be at the base so that it is right on target is only a trick argument to justify its policies," Trubus concluded.

Now, the government has finally allowed retailers to sell kg gas to normalize the distribution of subsidized gas. This decision is certainly a breath of fresh air for the government, and especially the community. With this status, residents no longer need to queue at the base to buy 3 kg LPG gas.

Policies related to energy subsidies, be it for gas, fuel oil (BBM), to electricity, indeed the impact feels very real to the grassroots, because subsidies are in direct contact with the lives of many people.

Recent events, which have actually been repeated many times, should be a lesson for the government not to implement policies suddenly. Especially when this policy causes someone to die.