Illegal Status, Government Wants To Turn 3 Kg Elpiji Certificates Into Official Distributors

LPG 3 kg (between)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that he would raise the status of 3 kg LPG retailers to become official distributor agents. According to him, this is intended so that the government can control the price of LPG distributed to the public.

"But I have asked that retailers who have met the requirements be raised to their status as bases, so that we can control their prices," Bahlil told the media crew at the Ministry of Energy and Mineral Resources Building, Monday, February 3.

Bahlil said, based on reports received, there was a price game carried out by retailers so that the price received by the public was more expensive than the price of the official distributor. This is also the reason the government made a policy of removing the purchase of 3 kg LPG through retailers.

"Reports that came to us, there were some of these LPG subsidies that were not on target. They didn't mean to be suspicious, there was a group of people who bought LPG with an unreasonable amount. In order to curb this, we made regulations that buy at the base," Bahlil explained.

He also emphasized that he would impose strict sanctions on distributors who helped increase the price of LPG 3 kg to the revocation of permits. However, Bahlil did not reveal further the terms that retailers had to fulfill to become an official LPG agent.

Previously, Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said that retailers who want to change their status to distributors are required to have a business identification number (NIB) by registering on the Online Single Submission (OSS) system.

"So the retailers, we actually make it a base. It is formal for them to register the company identification number first," Yuliot told the media crew, Friday, January 31.

Yuliot said this was intended to organize the distribution of subsidized LPGs to make them more targeted and shorten the distribution chain.

"This is how so that the price received by the community can be in accordance with the price limit set by the government," said Yuliot.

Just so you know, the distribution of 3 kg LPG has actually been regulated in the Decree of the Minister of Energy and Mineral Resources (ESDM) Number 37 of 2023 concerning Technical Guidelines for Distribution of Liquefied Petroleum Gas (LPG) Certain Right on target.

The regulation states that the distribution of 3 kg LPG to people who are entitled to it can only be carried out by sub-distributors. This channeling sub is required to have NIB.

Pertamina as a business entity appointed to distribute 3 kg LPG, is required to report a list of sub-distributors to the Directorate General of the Ministry of Energy and Mineral Resources.