Scheme Changed, 3 Kg LPG Prices Can Go Up

Jakarta, CNN Indonesia

Ministry of Energy and Mineral Resources (ESDM) plans to change the distribution scheme subsidy LPG 3 kilograms (kg) to be more targeted. The change in the scheme has the potential to raise the price of 3 kg LPG.

Director of Downstream Oil and Gas Business Development at the Ministry of Energy and Mineral Resources, Soerjaningsih, explained that the distribution of the 3 kg LPG subsidy will be carried out in a closed manner based on integrated social welfare data (DTKS). This is based on the recommendation of the DPR RI Budget Board (Banggar).

With closed distribution, the government will provide direct subsidies to those who are entitled to receive it.

“So the term on target will depend on the readiness of DTKS,” said Soerjaningsih, quoted from detikcom, Wednesday (19/1).

After DTKS is ready, changes to the LPG subsidy scheme are just waiting for the president’s approval. Later, changes to the scheme will have an impact on the price of 3 kg LPG.

Those who do not get subsidies have to buy LPG at market prices. Thus, the price will be more expensive than people who receive subsidies.

“When the DTKS data is accurate, it must be accurate, it will only be a decision, we are waiting for the president’s decision whether this will be applied to targeted subsidies because indeed the consequence of distributing subsidies on target is a 3 kg LPG price increase,” Soerjaningsih explained.

So far, the government has tested the distribution of targeted subsidies in several cities. However, the Ministry of Energy and Mineral Resources cannot confirm when the changes to the 3 kg LPG subsidy scheme will be implemented.

“When will this be implemented, we certainly await the readiness of DTKS and this will be carried out carefully so that people’s purchasing power is maintained,” concluded Soerjaningsih.

[Gambas:Video CNN]


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