ESDM Facilitates LPG Distribution Permits for Village Cooperatives

Indonesia's Ministry of Energy and Mineral Resources (ESDM) is set to simplify licensing and governance for the distribution of 3-kilogram LPG (liquefied petroleum gas) cylinders through village cooperatives known as Koperasi Desa/Kelurahan Merah Putih (KDKMP).

Laode Sulaeman, Director General of Oil and Gas at the Ministry of ESDM, stated that support for KDKMP is included in a draft Presidential Regulation. This regulation will govern the management of 3kg LPG distribution, facilitate easier licensing, and address other related matters. The ministry's involvement stems from KDKMP's role as a distributor of subsidized LPG. "The role of ESDM is in the distribution of 3kg LPG. It's subsidized LPG," Sulaeman explained.

Coordinating Minister for Food Affairs, Zulkifli Hasan, also known as Zulhas, emphasized that KDKMP will serve as a government infrastructure for distributing subsidized goods and aid. He assured that these village cooperatives would not undermine existing local businesses, including small and medium-sized enterprises (SMEs) owned by residents.

The government aims for approximately 25,000 KDKMP units to commence operations between August and September 2026. This number is projected to increase to 35,862 units by the end of the year. Zulhas expressed his hope that the Presidential Regulation detailing the governance of KDKMP would be finalized this week, providing a clear operational framework for all stakeholders.