Bahlil to Fix Oil and Gas Distribution: It Takes Guts to Fight Big Players

Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia. (Maria Trisnawati / VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia emphasized that he will take firm steps to regulate the distribution chain of fuel oil (BBM), especially Pertamax.

He highlighted the existence of irresponsible parties who hinder the arrangement of the energy distribution system. So it takes courage to take firm action against these individuals.

"Well, we are currently organizing this. Indeed, to fight the big players, these individuals, it takes guts," he said in a statement to the media, Monday, March 17.

Furthermore, Bahlil emphasized that one of the main focuses of the government at this time is to ensure that fuel subsidies are on target and received by the people who are truly entitled. He emphasized the importance of managing the state budget transparently and responsibly, as instructed by President Prabowo Subianto.

"Every rupiah of state money spent for the people, we are obliged to guard, ensure, and oversee that the funds reach the people. That is President Prabowo's order," he said.

Bahlil explained that the state has allocated a large budget for energy subsidies and compensation. Of the total State Budget (APBN) for 2025 which reached IDR 3,621.3 trillion, around 15 percent or IDR 394.3 trillion was managed by the Ministry of Energy and Mineral Resources for subsidies and compensation for Liquefied Petroleum Gas (LPG), fuel, and electricity.

In detail, IDR 87 trillion was allocated for LPG subsidies per year, IDR 26.7 trillion for fuel subsidies, and IDR 89.7 trillion for electricity subsidies. Meanwhile, the total energy compensation was IDR 190.9 trillion.

According to Bahlil, ensuring that the subsidies really reach the people who are entitled to them is part of his duties as Minister of Energy and Mineral Resources.

"I will never know tiredness. Because the people's right to receive is for those who are unable," he concluded.

In addition to improving fuel distribution, the Government is also focusing on the management of subsidized 3 kilogram (kg) LPG. Bahlil said that the Government has allocated a 3 kg LPG subsidy of IDR 36,000 per cylinder. The price of 3 kg LPG at the community level should be between IDR 18,000 and IDR 19,000 per cylinder.

However, in practice, various irregularities in distribution are still found, so that the community often has to pay a higher price, which is around Rp23,000 to Rp30,000 per cylinder.

"Since 2007, the government has never raised the price of LPG. The LPG subsidy provided by the government per kilogram is IDR 36,000 per cylinder. But what happened? Even to the people, some are IDR 23,000, IDR 25,000, even IDR 30,000," he said.

In an effort to regulate the distribution of subsidized LPG, the Ministry of Energy and Mineral Resources appreciates the results of the National Police Criminal Investigation Agency (Bareskrim)'s action which succeeded in uncovering a subsidized LPG adulteration syndicate in Bali.

A joint team from the Indonesian Police managed to arrest a group of 3 kg LPG cylinder adulterators in an operation at a warehouse in Banjar Griya Kutri, Singapadu Tengah Village, Sukawati District, Gianyar Regency, Bali, on Tuesday, March 11. The suspects are suspected of illegally transferring gas from 3 kg LPG cylinders to 12 kg and 50 kg cylinders.

The Ministry of Energy and Mineral Resources emphasized that legal action against violations of subsidized LPG distribution cannot be carried out separately. In addition, the Government emphasized the importance of collaboration between the government, law enforcement officers, PT Pertamina, and the community to ensure that energy subsidies are truly enjoyed by those who are entitled.

"Through these efforts, the Government hopes that the management of subsidized oil and gas and LPG distribution will be more transparent, efficient, and on target, so that the benefits can be felt optimally by the community," said Bahlil.