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

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.