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Govt walks back subsidized LPG policy after backlash

Since the policy was implemented, however, long queues have formed outside approved LPG distributors across various regions, with thousands of residents expressing frustration over their struggle to obtain the cooking gas.

News Desk (The Jakarta Post)
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Wed, February 5, 2025

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Govt walks back subsidized LPG policy after backlash Residents line up on Monday to exchange 3-kilogram liquefied petroleum gas (LPG) canisters in Cibodas, Tangerang city, Banten. Residents have said that it has been difficult for them to get the gas canisters following the government’s new policy prohibiting their sale at the retailer level and requiring people to buy them from official distribution centers. (Antara Foto/Putra M. Akbar)
Versi Bahasa Indonesia

T

he government decided to walk back its abrupt decision to ban small retailers from selling 3-kilogram canisters of liquefied petroleum gas (LPG) after the policy caused shortages and long waiting lines across the country.

House of Representatives Deputy Speaker Sufmi Dasco Ahmad of President Prabowo Subianto's Gerindra Party stated that the president has instructed Energy and Mineral Resources Minister Bahlil Lahadalia to allow retailers to sell the 3-kg LPG canisters.

"In the meantime, the government will gradually register these retailers as official sub-distributors to ensure [compliance with the government’s price cap] and prevent LPG prices from becoming excessively high for the public," he said in a statement on Tuesday.

Dasco also clarified that the policy to limit distribution of the 3-kg LPG canisters was not President Prabowo’s initiative, but that of the Energy and Mineral Resources Ministry. The President decided to intervene after receiving reports that the new sales regulation led to long queues as the public struggled to purchase the cooking gas, Kompas reported.

The Ministry set a sales limit on 3-kg canisters of the cooking gas to official distributors through a new regulation on Feb. 1, in a bid to tighten government oversight and targeted distribution.

Only households, microbusinesses, small farmers and small-scale fishermen are allowed to purchase the fuel. Eligible buyers must first register on a government website and present their ID at the point of sale.

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