Minister Of Energy And Mineral Resources Affirms Subsidized Fuel Abuse Threats Rp60 Billion Fines

Minister of Energy and Mineral Resources, Arifin Tasrif. (Photo: Ministry of Energy and Mineral Resources)

JAKARTA - The Minister of Energy and Mineral Resources (ESDM) ensures that the supply of fuel oil (BBM) and Liquified Petroleum Gas (LPG) throughout this year is guaranteed to be safe.

However, he reminded the public to use fuel according to their abilities, so that the allocation of fuel and LPG subsidies was not eroded and more targeted.

Minister Arifin also reminded again that the misuse of subsidized fuel would increase the burden on state finances. The public is asked to participate in monitoring and reporting if they find irregularities in the distribution and use of subsidized fuel.

"So if world oil prices stay at their current level, the government risks spending IDR 320 trillion for subsidies and compensation for fuel and LPG. That doesn't include electricity, maybe the electricity won't be that big," said Arifin, Monday, April 18.

In retrospect, under the current state budget assumptions, the price of Indonesian crude oil or ICP is set at US$63 per barrel, and the calculation of the allocation of subsidies and compensation for fuel and LPG is around Rp130 trillion.

"So there is IDR 190 trillion that must be prepared again," said Arifin.

To prevent the misuse of subsidized fuel, Pertamina is modernizing the monitoring system for Public Fuel Filling Stations (SPBU).

"We also remind you that there is an article in the law that will impose sanctions on the misuse of subsidized fuel, six years in prison and a fine of Rp. 60 billion," said Arifin.

The sanctions referred to by Minister Arifin are stated in Article 55 of Law Number 22 of 2001 concerning Oil and Gas, as well as Article 94 paragraph (3) of Government Regulation Number 36 of 2004 concerning Downstream Oil and Gas Business Activities, namely any person or business entity. those who misuse the Transportation and/or Trading of Oil Fuel subsidized by the Government shall be sentenced to a maximum imprisonment of six years and a maximum fine of Rp. 60 billion.

In addition, so that the distribution of subsidized fuel is more targeted to the people who are entitled to it, currently a revision is being made to Presidential Regulation number 191 of 2014 concerning the Supply, Distribution and Retail Selling Price of Oil Fuel.

The government, according to Arifin, continues to make various efforts internally, namely how to ensure that the distribution of fuel is right on target so that there is efficiency that can reduce the burden on state finances. In addition, the public is also encouraged to save energy and build awareness to be able to use energy as effectively as possible.

"Then secondly, externally, we must also be able to appeal to OPEC (Organization of the Petroleum Exporting Countries) to be able to increase its production quota," concluded Arifin.