The government is planning to establish a supervisory body for 3-kg liquefied petroleum gas (LPG) distribution − similar to the current fuel monitoring system − aimed at ensuring better distribution and price control of subsidized LPG.  

The Downstream Oil and Gas Regulatory Agency (BPH Migas) is currently responsible for supervising the distribution of fuel, but its mandate does not cover LPG. The government is now considering integrating LPG supervision into BPH Migas, streamlining its tasks under the Ministry of Energy and Mineral Resources (ESDM).  

"If possible, all supervision should be integrated into BPH Migas to improve efficiency. The businesses involved in oil and gas distribution are mostly the same, so it makes sense to combine their monitoring," Deputy ESDM Minister Yuliot Tanjung said on Friday, February 7,2025. 

Another key issue being discussed is the possibility of standardizing LPG prices nationwide, similar to the Rp 10,000 (61 U.S. cents) per liter for Pertalite fuel price. Currently, the Highest Retail Price (HET) for 3-kg LPG canister is determined by local governments. However, the central government has already set a Highest Reference Price (HRT).  

"The goal is to ensure that consumers get LPG at the right price, as determined by government regulations," Yuliot said.  

The new supervisory body is expected to involve representatives from ESDM Ministry, State-owned energy company PT Pertamina, and other stakeholders. Businesses distributing LPG will be required to submit reports to the supervisory body, similar to how fuel distributors report to BPH Migas.  

However, before implementing this system, the government will first need to revise existing regulations and expand the role of BPH Migas to include LPG monitoring, Yuliot said.  

Regulations and distribution tracking

Concerns have mounted regarding the distribution of LPG to micro-business. The government has clarified that no new special regulations would be introduced, but rather, the existing business permit system (NGB) would be used to track the LPG needs of micro-businesses based on their type, location, and demand.  

Additionally, Yuliot said, the government plans to enhance LPG distribution transparency by implementing a digital mapping system to track supply chains. This system will record LPG distribution at distributors and sub-distributors, ensuring that regional demand is accurately monitored.  

Sub-distributors under evaluation

Yuliot said further that the government is also evaluating the proposal to designate community units (RW) as LPG sub-distributors. 

“The plan is still under review, and further assessments will determine its feasibility,” he said.  

“With these initiatives, the government aims to enhance LPG distribution, prevent misuse of subsidies, and ensure fair pricing for consumers across Indonesia,” he concluded.