"We have (issued directives to) each directorate within the Industry Ministry to appeal to all of their sectors to not use subsidized fuel. If industrial companies still use subsidized fuel, there will be strict sanctions," Industry Minister Agus Gumiwang Kartasasmita said in a statement received here on Monday.
According to the National Industrial Information System (SIINas) data, the demand for diesel in the industrial sector for production processes and power generation has continued to increase. In 2021, the demand for diesel fuel for production was 8.4 billion liters, an increase from 214.9 million liters in 2019.
Related news: Industry players should use non-subsidized fuel: Energy Minister
Kartasasmita said he believed that the industrial sectors under the ministry's authority would comply with the applicable regulations regarding the use of diesel fuel, specifically Presidential Regulation Number 117 of 2021 about the Third Amendment to Presidential Regulation Number 191 of 2014 in regard to the Supply, Distribution and Retail Selling Price of Oil Fuel.
The Presidential Regulation states that diesel is a type of fuel subsidized by the government, with the Upstream Oil and Gas Regulatory Agency stipulating its supply and distribution, including limits on the distribution volume.
According to Presidential Regulation Number 66 of 2018, certain types of diesel fuel are subject to mandatory rules for mixing with FAME Biodiesel, with a composition of 30 percent (B30), and the difference in the price will be taken care of by the Palm Oil Agency.
“So, the industry must use diesel fuel specifically for industry, whose distribution scheme is different from certain types of subsidized diesel fuel. There are differences in the specifications of industrial fuel (Industrial Diesel Oil/IDO) with diesel fuel or subsidized B30 (Automotive Diesel Oil/ADO) which, if forced to use, will damage industrial machines," the minister informed.
The National Police and investigators from State Civil Servants will supervise the use of certain types of subsidized fuel that have been subsidized.
An Anti-Illegal Export of Diesel Fuel Task Force has been formed under the Coordinating Minister for Maritime Affairs and Investment, which has set uniform border security measures to prevent the misuse of diesel fuel for activities that violate the law. The task force was created to address issues of illegal exports of diesel fuel.
The special task force comprises relevant ministries such as the Industry Ministry, represented by the Inspectorate General, Indonesian Police, Navy, National Defense Force Headquarters, and the Maritime Security Agency.
Related news: Price disparity triggers subsidized diesel fuel scarcity: Minister
Translator: Sella P G, Mecca Yumna
Editor: Rahmad Nasution
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