TEMPO.CO, Jakarta - The Indonesian government is preparing a new policy to improve the distribution of subsidized 3 kg LPGs (liquefied petroleum gas). Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed the plan to implement a unified pricing system nationwide to prevent irregularities and ensure targeted subsidies.
"We are currently discussing a Presidential Regulation for 3 kg LPG. We will change the distribution method to prevent leakages. One of the possibilities is the implementation of a single price in all regions," stated Bahlil during a working meeting with the House Commission XII, on Wednesday, July 2, 2025.
He mentioned that irregularities are still rampant, from transferring the content of subsidized cylinders to non-subsidized containers to price manipulation at the retail level. "With a unified price, we aim to eliminate any room for manipulation below. So far, the state has disbursed around Rp 80 to Rp 87 trillion per year for 3 kg LPG subsidies, but not all of that assistance reaches the deserving citizens," he said.
Bahlil also highlighted the inequality in the beneficiaries of the subsidy. He stated that the affluent community actually enjoys more subsidized LPG, while low-income consumers are pressured by the high retail prices. "If prices in the field continue to rise, eventually the state's hope to alleviate the people's burden will not match the actual conditions," he emphasized.
In 2026, the Ministry of ESDM proposed a 8.31 million metric tons subsidy quota for 3 kg LPGs. The government will continue to distribute the subsidy in the form of price difference, similar to the scheme applied for kerosene.
Editor's Choice: Indonesian Ulema Council Declares Subsidized 3 Kg LPGs Haram for the Rich
Click here to get the latest news updates from Tempo on Google News
Transportation System in Indonesia is Yet to Be Integrated, Says Minister
2 jam lalu
Minister Agus Harimurti Yudhoyono (AHY) stated that the transportation system in Indonesia is not yet integrated.
Foreign Direct Investment in Southeast Asia Records Significant Growth
3 jam lalu
UNCTAD notes the highest growth in foreign direct investment (FDI) flow to Southeast Asia among other developing countries in Asia.
Profile of the Indonesian Hospital Director in Gaza Who Died due to Israeli Attacks
4 jam lalu
An Israeli airstrike killed the Director of the Indonesian Hospital in Gaza, Marwan Al-Sultan.
3 MIKTA Agendas Amidst Global Chaos, Indonesia Involved
4 jam lalu
Middle-power countries, including Indonesia, are uniting to strengthen their cooperation as part of MIKTA.
Indonesia Beaten 0-2 by Pakistan in 2026 Women's Asia Cup Qualifiers
12 jam lalu
The defeat leaves the Indonesian Women's National Team in second place in the provisional Group D standings of the 2026 Asia Cup qualifiers.
Indonesia Set to Join BRICS-Led New Development Bank
16 jam lalu
The New Development Bank (NDB) is a multilateral development bank established by the BRICS member countries in July 2014.
Gov't Proposes 2026 Fuel Subsidy at Up to 19.5 Million Kiloliters
16 jam lalu
Minister Bahlil also outlined government's plan to revise the presidential regulation on 3-kilogram LPG as part of efforts to prevent fuel subsidy.
Indonesia Plans Second-Stage Evacuation of Citizens from Iran
18 jam lalu
Indonesian Ambassador to Iran Roy Rolliansyah Soemirat stated that the evacuation plan for Indonesian citizens in Iran is still being finalized.
Indonesia Lowers 2025 Economic Growth Projection to 4.7-5 Percent
19 jam lalu
In addition to revising economic growth projections, Sri Mulyani predicted that the 2025 State Budget (APBN) deficit would widen to Rp662 trillion.
Indonesia Tipped to Win Against Pakistan in Women's Asian Cup Qualifiers
19 jam lalu
The Indonesian women's national team aims for its second Group D victory in the 2026 Women's Asian Cup Qualifiers against Pakistan.
