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BPH Migas sets lower subsidized fuel quota for 2021
Subsidized fuels is a prickly issue for the Indonesian government. The dirty commodity costs trillions of rupiah in state spending and swells carbon dioxide and air pollution levels, especially in big cities.
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App-based motorcycle taxi drivers refuel at a gas station in Central Jakarta on April 14. (JP/Seto Wardhana )
T
he Downstream Oil and Gas Regulatory Agency (BPH Migas) has set the subsidized fuel quota at 26.3 million kiloliters for next year, down 2.1 percent from this year, as Indonesia continues differing its clean fuel commitments.
BPH Migas set the quota at 15.8 million kiloliters of subsidized diesel (branded Solar), 10 million kl of subsidized gasoline (branded Premium) and 500,000 kl of kerosene, a common cooking fuel in rural Indonesia. Most of the fuels will be distributed by state-owned Pertamina while the remainder by privately-owned PT AKR Corporindo.
Read also: Govt to slash diesel subsidy 50%, generate trillions in 2021 savings
The gasoline and kerosene quota are, respectively, 9.1 percent and 10.8 percent lower than this year but the diesel quota is 3.3 percent higher – the only quota to be raised.
“In 2019, there was a [Solar] over quota so, for 2021, the quota was raised to meet consumer demand,” said BPH Migas head of fuel distribution I Ketut Gede Aryawan to The Jakarta Post on Wednesday.
Subsidized fuels is a prickly issue for the Indonesian government. The dirty commodity costs trillions of rupiah in state spending and swells carbon dioxide and air pollution levels, especially in big cities.
