60% of Rich People Consume Subsidized fuel, Pertamina Strives for Registration Mechanism

July 1, 2022 - Subsidies are intended for lower-middle-class people to ease their burden of life. But the fact is different from the subsidized fuel. Pertamina revealed that 60 percent of people who use subsidized fuel are rich.

"60% of the wealthy or those belonging to the rich group consume almost 80% of the total subsidized fuel consumption. Meanwhile, 40% of the vulnerable and poor only consume 20% of the total energy subsidy," said Irto Ginting, Corporate Secretary of Pertamina Patra Niaga, at the Press Conference at Graha Pertamina Jakarta, Thursday, June 30, 2022.

Subsidies usage that are not well targeted has encouraged Pertamina Patra Niaga, as Pertamina's Subholding Commercial and Trading, to seek mechanisms to ensure subsidies are right on target. According to Irto, targeted subsidies are essential, considering that the Government has allocated funds of up to IDR 520 trillion for energy subsidies in 2022.

The effort to create a mechanism for distributing subsidized fuel is also an implementation of Presidential Regulation No. 191 of 2014 and the Decree (SK) of the Head of BPH Migas No. 04/P3JBT/BPH Migas/KOM/2020.

According to him, the existing regulations stipulate user segmentation, quotas, and others regarding subsidized fuel distribution, but it is still not on target in the field.

"Therefore, Pertamina Patra Niaga, as the assignment's executor, took the initiative to develop a new mechanism to ensure that distribution in the field is right on target," added Irto.

The new mechanism, continued Irto, is being tested and begins with registration on the MyPertamina Website.

"This registration is intended for system-based or digital data matching," he added.

For that, said Irto, from July 1, 2022, Pertamina will open registration through the website: subsiditepat.mypertamina.id.

"During this registration period, people can still buy Pertalite and Subsidized Solar, but people are expected to immediately register four-wheeled vehicles and their identities to get a QR Code.

"The purpose of this data collection is to protect vulnerable people and ensure that energy subsidies are right on target," said Irto.**