Indonesia to offer Rp 15,000/liter fuel for larger fishing vessels

Indonesian fishermen operating larger vessels will soon benefit from a special subsidized fuel price of Rp 15,000 per liter. The policy, announced by Coordinating Minister for Economic Affairs Airlangga Hartarto, targets vessels between 30 and 200 gross tons (GT).

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Because these fishing entrepreneurs need to be given a special price, it was discussed that the agreed price is Rp 15,000 per liter.

This initiative aims to alleviate the financial burden on fisheries businesses, which have been struggling with the high cost of non-subsidized fuel, often exceeding Rp 21,300 per liter. Fishermen with vessels under 30 GT already receive fuel at Rp 6,800 per liter.

The government estimates the domestic production cost of this fuel to be around Rp 18,600 per liter. The approximate Rp 3,600 per liter difference will be subsidized by the Oil Palm Plantation Fund Management Agency (BPDP), ensuring it does not impact the state budget. Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that the BPDP has sufficient funds to support this policy.

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Therefore, the Minister of Energy and Mineral Resources will issue regulations regarding this subsidy. The subsidy amount, around Rp 3,600 per liter, will be financed by BPDP.

To ensure the program's effectiveness and prevent misuse, the Ministry of Energy and Mineral Resources will issue regulations and coordinate with the Ministry of Maritime Affairs and Fisheries to establish specific distribution points. A quota of 400,000 tons of special-priced fuel has been allocated for the next six months.

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This is all in order to provide certainty for our brothers and sisters in the fisheries sector because the prices are quite high at the moment. With this price of Rp 15,000, it is hoped that it can help the operational costs of fishermen who own vessels sized 30 GT and above.