The Lowdown On 3 Kilogram LPG Gas Policy

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The dynamics of the 3-kilogram (kg) subsidized LPG gas policy continue to be discussed and often become an arena for debate in the community. On the one hand, 3 kg LPG gas is considered the right solution for the community after the gas conversion policy, but on the other hand with the concept of subsidies borne by the state budget, the existence of 3 kg LPG gas is considered a burden for the government. If we look at history, the presence of 3 kg subsidized LPG gas cannot be separated from the role of the SBY-Jusuf Kalla era government, Jusuf Kalla, who at that time served as Vice President of the Republic of Indonesia, is considered a meritorious party in the effort to convert kerosene to gas, which is mathematically considered to save the state budget up to trillions of rupiah.

In the course of its implementation, despite experiencing a Cultural Jump Phase between 2007-2010, where people were still unprepared for the adjustment, a series of technical accidents and even explosions in the use of 3 kg gas, in fact this conversion policy was gradually accepted by the wider community. The peak benefits of this policy were seen in 2015, marked by the decline in kerosene use from 9.85 million kilo liters in 2007 to only 850 thousand kilo liters in 2015.

The success of suppressing the use of kerosene and maximizing the use of 3 kg LPG gas still has some hidden problems. The government did succeed in suppressing the use of kerosene, but the subsidy scheme applied to the distribution and use of 3 kg LPG gas disrupted the government’s budgetary capacity. One of the crucial moments occurred between 2016-2020 when the government was trying to find the best way to implement a closed subsidy system to ensure that the distribution of 3 kg LPG gas was better targeted.

***Trial and Error*Policy**

When it comes to implementing policies for the benefit of the wider community, we must admit that data accuracy and technical implementation are almost always an obstacle in various policy implementations in Indonesia, and the implementation of 3 kg LPG gas subsidies is no exception. It should be recognized that the distribution and use of 3 kg LPG gas is still not well-targeted. This condition eventually forced the government to try to implement a trial and error policy to overcome the problem in the short term.

Unfortunately, in the context of the implementation of the 3 kg LPG gas distribution policy, the government is considered to lack coordination, miscalculate and forget about the impact aspect of the policy. Policies that were considered sudden, lacked socialization, and did not favor the community eventually received negative responses from various groups. Both those who use 3 kg LPG gas and those who do not. The public could not accept that basic and very private needs such as cooking in the home kitchen had to be met with a long and time-consuming queuing process at the gas station. Even worse, it is reported that in some locations the queue has claimed lives. This is certainly unacceptable to the common sense of people living in a country that is considered capable of managing its natural resources (especially natural gas).

Pressure to cancel the distribution of 3 kg LPG gas centralized at Pertamina’s official bases continued to echo and spread quickly. In the end, the policy was overturned by previous policymakers. Again and again, trial and error policy mechanisms are used to test public response. This pattern shows that policies are often not reasonable and do not go through a structured and in-depth study process.

The 3 kg LPG gas subsidy, which reaches Rp87 trillion each year, can indeed be categorized as a sector that burdens the state budget. However, drastically changing the policy without taking into account the short-term and long-term impacts also has the potential to create a chaotic situation in society. Careful coordination, thought, commitment and execution are needed to ensure that the distribution of 3 kg gas is better targeted. One way that can be used as an alternative to ensure that the 3 kg gas subsidy can be better targeted is through simplifying the process and verifying the eligibility of 3 kg gas subsidy recipients through a digital system. A digital system based on the community’s Population Identification Number (NIK) can be applied to both sellers at the base and retail levels as well as household consumers. A comprehensive and robust digital system needs to be built so that both sellers and buyers are verified as eligible for the subsidy. A strong and integrated digital system is believed to minimize the misuse of 3 kg LPG gas subsidy distribution.

In the end, the basic needs of the community should be properly guaranteed by the government. The government’s duty is to ensure that all forms of basic needs of the community can be met easily, safely and comfortably. The quality of public policy is the key answer that must be given to the government to the community. This can only be fulfilled through a mature and well-structured process.

Author: Gerry Katon Mahendra, S.IP., M.I.P.-Public Administration UNISA Yogyakarta