UNESA Energy Audit Expert Discusses Fuel Subsidy Management in Pipamas Energy Talk

Unesa.ac.id, SURABAYA—Indonesia's fuel production does not meet domestic needs, forcing the government to import, which on the other hand, can harm national interests. Therefore, Indonesia is struggling to increase domestic production to reduce dependence on imports and increase export revenues.

This was conveyed by energy audit expert and lecturer at the Faculty of Engineering (FT) Universitas Negeri Surabaya (UNESA), Dr. Mohammad Affendy, S.T. M.T., in the Pipamas Energy Talk organized by PT Pipamas in collaboration with UNESA at the 9th Floor Auditorium, Faculty of Medicine (FK), Lidah Wetan Campus, on Monday, March 13, 2023.

In the event, there were also other speakers, namely Prof. Dr. Rudi Purwono, an economist from Universitas Airlangga, and Deden Mochammad Idhani, Area Manager Communication, Relation, & CSR of PT. Pertamina Patra Niaga. They were moderated by Putri Ayuningtyas, a broadcast journalist.

The FT UNESA lecturer added that Indonesia's oil production is around 800 thousand barrels per day, while domestic needs reach more than 1.5 million barrels per day. He hopes that this event can increase students' and the academic community's understanding of the fuel condition and the policies surrounding it.

"In addition, Pertamina's programs related to distribution or how to use subsidized fuel according to vehicle criteria were also discussed. Other topics included renewable energy issues, potential fuel crises, steps to ensure fuel subsidies are on target, and measures to curb excessive fuel consumption," he said.

Meanwhile, Deden Mochammad Idhani stated that the nature of subsidized fuel lies in the limited quantity of subsidized products, where the consumers are specific targets that need to be recorded. Based on data, users of subsidized diesel fuel JBT-PERPRES 191/2014 include land transportation, fisheries businesses, public/government services, water transportation, agricultural businesses, and micro/small businesses (UMKM).

"Those who misuse subsidized fuel can face criminal sanctions according to applicable regulations," he said.

To address this disparity, the government requires consumers of subsidized fuel (solar JBT and pertalite JBKP) to register their vehicles to separate eligible and ineligible consumers. Pertamina then conducts data verification and matching, including determining consumers to help those entitled to subsidized products receive better service.

The benefits of this program include: 1) from the regional government sector, it can help increase regional revenue linked to the increase in PBBKB from the sale of fuel and assist in monitoring the distribution of subsidized fuel to the community according to Perpres 191/2014. 2) from the community sector, consumers receive subsidized fuel with valid data assurance, shorter queue times, and education on the rules for distributing subsidized fuel.

Then, 3) from the gas station sector, it can help provide fuel services to the community without worrying about the eligibility of subsidy recipients.

Regarding the fuel crisis, Prof. Dr. Rudi Purwono stated that Indonesians' fuel consumption is very high compared to the industry's production capacity. This can be seen in the quality of domestic fuel production, which, based on APBN data, continues to decline yearly.

Even in 2023, the target is to have around 600 thousand barrels of oil per day, compared to the need for more than that, reaching 1.5 million barrels per day. Therefore, good production management is needed to look at the coming years, not just today. "So, the balance between needs and production must be continuously monitored to avoid a crisis," he said.[]

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Authors: Saputra and Azhar

Editor: @zam Alasiah*

Photo: UNESA Public Relations Team Documentation

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