Jakarta –
Not all people can buy LPG 3 kg in 2023. Because the government will change the distribution mechanism.
The policy plan was outlined in the Macroeconomic Framework and Fiscal Policy Principles 2023 (KEM PPKF).
The distribution of 3 kg of LPG will be carried out as a personal subsidy and will also be combined with social assistance programs (bansos).
“It becomes a subsidy to the person that synergizes with other social assistance programs. The implementation of the transformation of the 3 kg cylinder LPG subsidy will be carried out carefully considering the economic conditions, as well as the availability of data and infrastructure”, quoted by the Framework Document Macroeconomic and Fiscal Policy Principles (KEM PPKF) 2023 Sunday (17/12/2022).
This was done to comply with the provisions of the energy law n. 30 of 2007, which provides that energy subsidies are granted only to the poor. Furthermore, according to the DPR n. 38 of 2019, the incentives for 3 kg LPG cylinders are also given to fishermen and small farmers.
Then, according to the DPR n. 104 of 2007, subsidies LPG 3Kg given to the RT group and micro-enterprises. However, the regulation does not include restrictions for poor and vulnerable family groups.
“Because of this, improvements need to be made to the current 3kg bottled LPG subsidy policy which references the kerosene (mitan) conversion program to 3kg bottled LPG in 2007,” the article continued.
So why did the mechanism change next year? The government claims that increased LPG consumption has added to the state’s tax burden. Therefore this step has been taken.
“Taking into account the trend of increasing volumes of subsidized LPG consumption and the growing tax burden, the government is trying to improve the distribution mechanism of subsidized 3 kg LPG cylinders through a transformation aimed at changing the paradigm of subsidized goods (price differences), ”the quote reads.
Meanwhile, the realization of energy subsidies in the first quarter of 2022 includes fuel subsidies of IDR 3.25 trillion or 28.75% of the 2022 state budget, subsidies LPG 3 kg of IDR 21.65 trillion 32.68% of the 2022 APBN and electricity subsidies reaching IDR 7.62 trillion 13.50% of the 2022 APBN.
(das/zlf)
