The Audit Board found irregularities in how small retailers distributed the cooking gas, including price markups. - Photo: AFP
JAKARTA: Indonesia’s energy minister apologised for a policy that banned small retailers from selling canisters of subsidised cooking gas used by millions of households, scrapping the move that led to long lines and sparked public anger.
The government on Tuesday (Feb 4) ended its action that took effect on Feb 1 to sell three-kilogramme cannisters of liquefied petroleum gas at designated facilities.
The Audit Board found irregularities in how small retailers distributed the cooking gas, including price markups and sales to ineligible beneficiaries, that prompted the energy ministry to issue a directive to limit distribution.
Energy Minister Bahlil Lahadalia was met by angry residents Tuesday when he visited a distribution point in Tangerang city outside Jakarta for the rounded three-kilogram canisters nicknamed "melon gas” because of their shape and bright green colour.
Lahadalia offered an apology and was later summoned by President Prabowo Subianto over the move that appears to have dealt a blow to his government that’s enjoying record-high popularity.
"I apologise if there are long lines or other obstacles,” the minister said in a statement Tuesday, adding Prabowo told him retailers are back in operation and prices must remain affordable.
Prabowo, who took office in October, pledged during his campaign "to fine-tune” energy subsidies.
About 80% of the 350 trillion rupiah (US$21 billion) the government spends to subsidise diesel and cooking gas mainly benefit middle- and higher-income Indonesians, an adviser to Prabowo has said.
The anger over the plan moved beyond the lines at distribution sites to social media, where the hashtag #lpg3kg trended this week in the country.
An Instagram post from Prabowo was flooded with comments complaining about the difficulties of getting cheap cooking gas, as well as calls to fire Lahadalia.
Cooking gas accounts for a sizable chunk of Indonesia’s subsidy expenditure.
The government allocated 87 trillion rupiah for the three-kilogramme LPG this year, or 43% of its total energy subsidy.
While subsidies have been instrumental to keeping basic necessities like cooking gas and diesel more affordable for Indonesians, the system of disbursing them is often riddled with problems, which often bloats the budget beyond estimate. - Bloomberg
