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Solar Subsidies Reduced in 2022, Lowest in the Last Five Years

Adi Ahdiat 23/06/2023 12:30 WIB

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According to the Supreme Audit Agency (BPK) report, the realization of solar fuel subsidy spending in fiscal year 2022 reached Rp10.1 trillion, a 25% decrease compared to 2021.

Realization of Indonesian Solar Subsidy Spending (2013-2022)

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Realization of Indonesian Solar Subsidy Spending (2013-2022)

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According to a report by the Indonesian Supreme Audit Agency (BPK), in the 2022 fiscal year, the Indonesian government spent approximately Rp10.1 trillion on solar subsidies.

The realization of solar subsidy spending decreased by 25% year-on-year (yoy) compared to the 2021 fiscal year, marking the lowest amount in the last five years.

The BPK also noted that throughout 2022, the government distributed 17.6 million kiloliters of subsidized solar fuel out of a total quota of 17.8 million kiloliters.

"The distribution of JBT (Jenis BBM Tertentu/certain types of fuel, including kerosene and subsidized solar fuel) is being optimized to ensure that poor households, micro-businesses, farmers, and small-scale fishermen can obtain the fuel they need at affordable prices," stated the BPK in its report.

Starting in mid-2023, the government, through Pertamina Patra Niaga, implemented restrictions on the distribution of subsidized solar fuel using a QR Code system.

Consumers are now required to register beforehand and use a QR Code when purchasing subsidized solar fuel. This is intended to ensure that the fuel is only accessible to eligible consumers.

"Considering that the distribution of subsidized solar fuel is regulated in the Decree of the Upstream Oil and Gas Regulatory Agency (BPH Migas) No. 04/P3JBT/BPH MIGAS/KOM/2020, including vehicle criteria and daily volume or quota, we are gradually implementing a full QR Code system for subsidized solar fuel," said Irto Ginting, Corporate Secretary of Pertamina Patra Niaga, in a press release (May 25, 2023).

Based on the appendix of Presidential Regulation No. 191 of 2014, eligible consumers for subsidized solar fuel include private vehicles, yellow-plated public transportation, public service vehicles (ambulances, hearses, garbage trucks, fire engines), and goods transportation vehicles (except those transporting mining and plantation products with more than 6 wheels).

Subsidized solar fuel is also intended for micro-businesses, agricultural businesses, fisheries, and small-scale water transportation.

However, according to the Upstream Oil and Gas Regulatory Agency (BPH Migas), before the QR Code system was implemented, the distribution of subsidized solar fuel often missed its target.

"There was misuse of subsidized solar fuel by large industries, such as mining and palm oil companies, and 4-wheeled and 6-wheeled motor vehicles that exceeded the maximum daily subsidized fuel consumption limit," stated BPH Migas in its Frequently Asked Questions section on its official website.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Solar Subsidies Reduced in 2022, Lowest in the Last Five Years

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