Together with the Government, Pertamina is Ready to Distribute 2024 Energy Subsidies to the Right Target

Jakarta, March 14, 2024 – Pertamina is ready to carry out the Government's assignment to distribute 2024 energy subsidies to appropriate targets. Through PT Pertamina Patra Niaga as Subholding Commercial & Trading, Pertamina will ensure that the subsidized energy distribution reaches less fortunate communities in the country at affordable prices.

In 2024, Pertamina is tasked to distribute Subsidized Fuels for Certain Types of Oil (JBT) Kerosene with a quota of 0.5 Million Kiloliters (KL), JBT Solar Oil with a quota of 17.8 Million KL, and 3 Kg Cylinder LPG amounting to 8.03 Million Metric Tons (MT). The quotas for JBT Solar Oil and Kerosene are based on the Decree of the Head of BPH Migas No. 89/P3JBT/BPH MIGAS/KOM/2023, while the LPG quota is based on the Ministerial Decree of ESDM No. 446.K/MG.05/DJM/2023.

The Government and Pertamina have signed the 2024 Energy Subsidy Contract to implement the Energy Subsidy.

Director General of Budget of the Republic of Indonesia's Ministry of Finance, Isa Rachmatarwata, stated that the Government has allocated a total of IDR 189.1 trillion for energy subsidies in 2024, covering subsidies for Certain Types of Oil (JBT), 3 Kg Cylinder LPG, and Electricity. From the amount, IDR 25.8 trillion is allocated for JBT subsidies and Rp87.4 trillion for 3 Kg Cylinder LPG subsidies.

"These are not small numbers. And we want to ensure they reach the right people. It means that those who are entitled to receive subsidies are the ones who should actually benefit from them," said Isa during the signing ceremony of the 2024 Energy Subsidy Contract in Jakarta on Thursday (14/3).

He emphasized that energy subsidies are the Government's commitment to maintaining the purchasing power of the public and the productivity of small businesses, which will drive national economic growth.

"This subsidy is always important for our country because, with subsidies, the government can directly assist the people in facing price fluctuations, supply availability, and other challenges," added Isa in his remarks at the event.

Through the 2024 Energy Subsidy Contract, the Government invites Pertamina to improve governance and ensure that the right community receives subsidized energy.

"We ask for cooperation and support from businesses to achieve the targets of these subsidies. Not just in terms of volume or monetary value, but the recipients' targets will be increasingly accurate," said Isa.

President Director of Pertamina, Nicke Widyawati, stated that as a State-Owned Enterprise (SOE), Pertamina will fulfill the mandate to provide affordable energy access with the support of government energy subsidies. Pertamina will ensure that the energy subsidy distribution reaches the right community. For example, the subsidized solar energy target aims to benefit fisheries, agriculture, MSMEs, water transportation, and public services.

"With the 2024 Energy Subsidy Contract, Pertamina is strengthening its commitment to maintaining national energy security and ensuring fair energy distribution for all Indonesian citizens," Nicke said.

She added that Pertamina has implemented various digitalization innovations to ensure targeted energy subsidy distribution. Pertamina has registered vehicles eligible for subsidized energy and conducted surveys of low-income communities eligible for the 3 Kg Cylinder LPG subsidy.

Meanwhile, throughout 2023, Pertamina distributed 17.42 million KL of JBT Solar Oil, 0.49 million KL of JBT Kerosene, and 8.05 million MT of 3 Kg Cylinder LPG.

"With digitalization and stakeholder support, the distribution of subsidized fuels and assignments has been controlled according to the allocated quotas. Pertamina will continue to innovate to ensure more targeted energy subsidies," Nicke added.

Nicke emphasized that Pertamina is committed to maintaining national energy security and independence by adhering to the principles of availability, accessibility, affordability, acceptability, and sustainability.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**