Fuel Subsidy Quota Increased, Sultan Requests Allocation in Commodity Producing Regions to be Prioritized

07 January 2023 oleh admin

dpd.go.id - Vice chairman of the House of Regional Representatives (DPD) RI Sultan B. Najamudin asked the Government to give priority to the allocation of subsidized fuel oil (BBM), especially diesel fuel, to regions producing main export commodities such as palm oil and other plantations.

This was conveyed by Sultan in order to encourage the acceleration of industrial activities and logistics of export commodities in the regions. We hope that the current windfall profit trend must be maximized by the government with proportional and balanced fiscal incentives for the regions.

"We appreciate the government's decision to continue to show commitment and consistency in providing fiscal stimulus to the people amidst the threat of a global economic recession. Especially in maintaining fuel subsidies which are more or less burdening the state budget," said the Sultan through his official statement on Friday (06/01) in Bangalore.

The fuel subsidy policy, said the former chairman of the Bengkulu HIPMI, has a broad economic impact and plays an important role in maintaining the momentum of Indonesia's economic recovery and growth so far. However, we hope that the government needs to allocate this subsidized fuel proportionally according to regional needs.

"The problem is that until now we still have long queues of vehicles using subsidized diesel fuel in many areas, especially in areas that produce palm oil and other plantation products. I think this is important to be taken into consideration by the government, in this case the Ministry of Finance and the Ministry of Energy and Mineral Resources. determine the allocation of subsidized fuel specifically for logistical needs in the regions," said Sultan.

According to him, the existence and availability of subsidized fuel for the type of biodiesel significantly affected the inflation rate and decreased farmer exchange rates (NTP) in the regions. Because most of the types of vehicles that are active in the logistics sector and the plantation industry in the regions are small to medium vehicles that are entitled to the use of subsidized fuel.

"Therefore, we encourage Biodiesel derived from a mix of diesel and CPO to be allocated in accordance with the regional contribution to palm productivity and the export value of its derivative products. Thus, this can boost the productivity and activity of the plantation industry in the regions," he concluded.

The Downstream Oil and Gas Regulatory Agency (BPH Migas) has set a 2023 fuel oil (BBM) quota for certain types of fuel (JBT), kerosene of 0.5 million kiloliters (KL) and diesel oil of 17 million KL. As for the Type of Fuel for Special Assignment (JBKP/Pertalite) it is 32.56 Million KL. (*)