Energy Security Pipe Dream

4 hours ago 2

The shortage of Pertalite and diesel fuel reflects poor energy management. Efforts to limit the consumption of subsidized fuel fail completely.

THE shortage of subsidized fuels such as Pertalite and diesel in various regions exposes the poor state of national energy management. Long queues of vehicles at public gas stations reflect the superficial nature of quota planning, the chaos in risk mitigation, and weak oversight.

Hiding behind the pretext of efficiency and budget savings, the government has failed to anticipate the domino effect of its own policies. After strangling supply under the guise of reducing energy subsidy spending, the government neglected to control consumption. This year, the Pertalite quota was slashed to 29.26 million kiloliters, a 5.9 percent decrease from the previous year. By June, 47.68 percent, or almost half of the quota, had been used up.

The problem escalated when Pertamina raised the price of the non-subsidized Pertamax fuel by as much as 32.1 percent. The decision to raise the price of Pertamax without tightening consumption restrictions on Pertalite was a fatal blunder. The outcome was predictable: the migration of upper-middle-class consumers. Daily Pertalite consumption consequently surged by 9.4 percent—an average increase of 7,129 kiloliters per day—while Pertamax consumption fell by 18 percent. The failure to control Pertalite consumption means the established quota will be exceeded before the end of the year.

Amid this situation, the government and Pertamina continue parroting about the supposedly secure stocks of fuel. This narrative clashes with the reality on the ground in various regions. In Palembang, South Sumatra, lines of trucks and private vehicles stretched for more than 2 kilometers at one point. In Medan, North Sumatra, many gas station operators are left twiddling their thumbs as their daily supply has been cut to half of the normal allocation. Fishermen are forced to remain at shore due to the scarcity of subsidized diesel fuel. Low-cost transportation options such as motorcycle taxis and public transit are also at risk of being unable to operate if Pertalite runs out.

The 15-day stock level that forms the basis of the government’s claims is very fragile in reality, because it falls far short of the 90-day minimum standard set by the International Energy Agency (IEA). It is about time the government comes up with an honest assessment of the state of fuel stock. After all, transparency is key to crisis mitigation. The government must disclose the basis for calculating fuel subsidy quotas by region, along with the actual distribution figures. Without data transparency, public suspicion of irregularities, hoarding, or misallocation could trigger unrest.

One crucial step that cannot wait any longer is ensuring proper regulation. The government must immediately finalize the revision of the presidential regulation on the supply, distribution, and pricing of fuel, which has been discussed since the Joko Widodo administration. The lack of clarity regarding the criteria for consumers eligible to purchase Pertalite and diesel has allowed subsidized fuels to be exploited for years. Luxury and industrial vehicles are still freely consuming a resource that should be reserved for low-income citizens and public transportation.

President Prabowo Subianto cannot afford to let his ministers repeat the “firefighting” management pattern: only springing into action after a crisis has already taken place. A comprehensive audit is needed toward quota setting, refinery reliability, imports, and downstream oversight. Without the will to radically address the root causes of the problem, national energy security is just empty rhetoric.

Read the Complete Story in Tempo English Magazine


Prabowo Inaugurates Five Dams Across Four Provinces

18 hari lalu

Prabowo Inaugurates Five Dams Across Four Provinces

President Prabowo inaugurated five strategic dams across four provinces to strengthen water, food, and energy security. Here are the details.


Oil, Gas, or Nuclear? Inside the Indonesia-Russia Pact

14 Mei 2026

Oil, Gas, or Nuclear? Inside the Indonesia-Russia Pact

Indonesia and Russia discuss strategic energy cooperation in Kazan, covering oil, gas, and nuclear power.


Prabowo Attends Opening Ceremony for ASEAN Summit in Cebu

8 Mei 2026

Prabowo Attends Opening Ceremony for ASEAN Summit in Cebu

President Marcos Jr. emphasizes the importance of the collective commitment of ASEAN countries to continue maintaining dialogue, cooperation, and mutual respect.


Indonesia-Japan Ink Critical Minerals, Nuclear Energy Pact

16 Maret 2026

Indonesia-Japan Ink Critical Minerals, Nuclear Energy Pact

Indonesia and Japan sign a landmark energy pact in Tokyo, focusing on critical mineral supply chains, nuclear technology, and energy security.


Rethinking Energy Security in a Net-Zero World

14 Juli 2025

Rethinking Energy Security in a Net-Zero World

As the world shifts towards a cleaner energy future, ensuring energy security while managing the energy transition remains a complex challenge.


Indonesia to Launch Forestry Carbon Trading Program

14 Maret 2025

Indonesia to Launch Forestry Carbon Trading Program

Indonesian Minister of Forestry Raja Juli Antoni has announced that the government will soon launch carbon trading within the forestry sector.


Indonesia to Build Oil Refineries with Total Capacity of 1 Million bpd, Minister Says

11 Maret 2025

Indonesia to Build Oil Refineries with Total Capacity of 1 Million bpd, Minister Says

Indonesia will build oil refineries on several of its islands, including Kalimantan and Sulawesi, with a total capacity of 1 million barrels per day.


Prabowo Forms Downstream-Energy Security Task Force, Bahlil to Lead

10 Januari 2025

Prabowo Forms Downstream-Energy Security Task Force, Bahlil to Lead

Prabowo formed the task force to care for mineral and coal downstream, agriculture, and energy security.


ASEAN Considering Critical Mineral Collaboration to Maintain Energy Security

27 Agustus 2023

ASEAN Considering Critical Mineral Collaboration to Maintain Energy Security

ASEAN countries are considering critical mineral collaboration for maintaining the region's energy security


MyPertamina App Mandatory for Pertalite Purchase; Palace Explains the Reason

29 Juni 2022

MyPertamina App Mandatory for Pertalite Purchase; Palace Explains the Reason

Presidential main expert staffer confirmed that the trial run of the distribution of subsidized fuel, Pertalite and Solar, will take effect on July 1.


Read Entire Article
International | Entertainment | Lingkungan | Teknologi | Otomotif | Lingkungan | Kuliner |