The 3 kg LPG subsidy continues to increase. For this reason, the construction of household gas networks is being pushed back.
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President Joko Widodo led a closed meeting on household gas network and distribution of 3-kilogram LPG canisters at Merdeka Palace, Jakarta on Thursday . Vice President Ma'ruf Amin and the Coordinating Minister for Economic Affairs, Airlangga Hartarto, the Minister of Energy and Mineral Resources, Arifin Tasrif, the Minister of Industry, Agus Gumiwang Kartasasmita, and Deputy Finance Minister Suahasil Nazara were present during the meeting which started at 2 pm.
The increase in gas subsidies is inversely proportional to non-subsidized LPG gas which is normally sold in 12 kg and 50 kg cylinders. In 2019, the allocation of non-PSO gas was still 0.66 million metric tons, but decreased to 0.62 million metric tons in 2020. In 2021, this figure decreased again to 0.6 million metric tons and last year it was only 0.46 million metric tons.
So far, the provision of gas networks for households is regulated by Presidential Regulation Number 6 of 2019 concerning the Provision and Distribution of Natural Gas Through Transmission Network and/or Distribution of Natural Gas Through Transmission Network and/or Distribution of Natural Gas for Households and Small Customers. Under this regulation, the provision and distribution of gas is carried out by the central government and business entities.
President Jokowi, as stated by Airlangga, requested for a calculation to be made so that LPG fields or fields with potential LPG production can facilitate a smoother implementation of the jargas policy. Jargas is also assessed to be able to save up to 40 percent of LPG subsidies. Therefore, this policy should not oscillate. On the contrary, when policies are not running smoothly, prejudices can arise such as the fear of no"fee" benefits from gas imports or difficulties in"playing" gas in the network.Meanwhile, 3 kg LPG canisters in certain areas such as in Sulawesi are starting to become scarce.
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