The government has set a target to build 150 single-price fuel suppliers in 150 regions across the country by 2019. Of the target, some 54 suppliers will be in 2017, 50 in 2018, and 46 in 2019.
Jakarta (ANTARA News) - The government has launched a single-fuel price program in certain areas across the country since January this year, as part of its efforts to provide fuels at equal prices for consumers.

For this year, the government has set a target to establish single-price fuel suppliers in 54 regions. But until Nov 4, the number of single-price fuel distributors that has been established was only 50 percent, or 27 suppliers.

Thus, the government has to establish 27 others in less than two months in order to meet its target of setting up 54 distributors in 2017.

The government has set a target to build 150 single-price fuel suppliers in 150 regions across the country by 2019. Of the target, some 54 suppliers will be in 2017, 50 in 2018, and 46 in 2019.

However, this year, it seems unlikely for the government to be able to meet its target of setting up single-price fuel suppliers in 54 areas. The main problem faced is obtaining a license for the program in the specific location.

"Principle license is really needed, but in certain areas, consensus is yet to be reached. Yet, everything is already in the process," Muhammad Ibnu Fajar of the Upstream Oil and Gas Regulator (BPH Migas) of the Ministry of Energy and Mineral Resources (ESDM) stated in Jakarta on Friday (Nov 3).

He noted that the BPH Migas Committee will always directly contact the district heads when the program faces license problem. After the problem is settled, the location, where the fuel station of the single-fuel price is to be built, will be decided. He added that at least 14 other areas were still facing the licensing problem for the establishment of the supplier target this year.

Previously, BPH Migas had explained that the problem faced included coordination with local governments (as the local governments often have different opinions) and location designation (the opinions of state-owned oil and gas company Pertamina sometimes differ from those of the local governments).

Fajar pointed out that the other problem was the delay in the licensing process. For example, when negotiation is underway for a certain place, the local government would issue license for another location in a second recommended place, thus delaying the process.

Hence, the BPH would coordinate directly with the district head concerned. The other problem lies with the investors. Although the location has been ready, the investors are still in the processing stage.

For the next year, BPH Migas will reformulate the locations with local governments first, because there is constraint in location criteria in 2017, where the location is often changed because the local governments have different formulation regarding the criteria of the locations.

He hoped that the establishment of supplier agents/distributor stations of the single-fuel price program, which was announced by President Joko Widodo in October 2016, would run smoothly, thus achieving the building suppliers target in 150 areas across the country by 2019.

According to Saryono Hadiwidjoyo, as reported by the kbr.id online on Nov 4, 2017, the government has set up 27 suppliers out of the targeted 54 in 2017.

He revealed that a total of 27 suppliers have been set up, of which eight are located in Papua Province, two in West Papua, one in North Sumatra, one in West Sumatra, one in Central Java, one in East Java, one in West Nusa Tenggara, one in East Nusa Tenggara, one in Northeast Sulawesi, one in East Kalimantan, two in North Maluku, two in West Kalimantan, one in North Sulawesi, one in Central Kalimantan, one in Maluku, and one in Bali. One supplier agent location was undisclosed.

In the meantime, 27 other single-price fuel distributor agents for 2017 are still in the process of establishment, namely 10 in Sumatra, one in Java, one East Nusa Tenggara, four in Kalimantan, five in Sulawesi, and six in Papua and West Papua.

The efforts of Pertamina to carry out the governments single-fuel price program in a number of regions in the country is in line with Ministerial Regulation No. 36 Year of 2016 on the Implementation of Single-Price Program for Certain Types of Fuels and Certain Assignment Fuels, which have been implemented on a national scale since Jan 1, 2017.

Saryono pointed out that the single-fuel price program is carried out in areas or regions which sell fuels at a higher price.

"Pertamina is required to establish supplier or distributor agents for the single-price fuels, which are focused on regions with inadequate sea and land infrastructure in 2017. After being identified, a total of 54 areas are targeted to have single-price fuel suppliers in 2017," Saryono explained.(*)

Reporter: Andi Abdussalam
Editor: Heru Purwanto
Copyright © ANTARA 2017