UNAIR NEWS The government檚 policy on subsidized 3-kilogram LPG has sparked widespread debate among the public. Initially, the Ministry of Energy and Mineral Resources (ESDM) banned retailers from selling the subsidized LPG as of February 1, 2025, aiming to ensure subsidies reached the intended recipients. However, the restriction led to widespread shortages across multiple regions, prompting the government to revoke the ban and officially recognize retailers as sub-agents under Pertamina.
Dr. Ni Made Sukartini, SE, MSi, MIDEC, a lecturer at Faculty of Economics and Business (FEB) (UNAIR), shared her insights on the policy. She emphasized that 3-kilogram LPG plays a crucial role in economic activities, not only for household consumption but also in small-scale production, particularly within the micro, small, and medium enterprises (MSME) sector. Given its significance, she stressed the need for the government to reform subsidy distribution to better target those in need.
Economic implications of the 3-Kilogram LPG policy
At the beginning of 2025, the government sought to regulate the distribution of 3-kilogram LPG by requiring retailers to register for a Business Identification Number (NIB) through the Online Single Submission (OSS) system. Dr. Sukartini pointed out that the policy was enforced too abruptly, without adequate public outreach, which triggered backlash from consumers and business owners alike. As a result, supply chain disruptions led to rapid shortages, particularly in urban areas where business activity is concentrated.
淭his is part of a broader economic adjustment, where policy changes aimed at subsidy regulation and efficiency often prompt immediate reactions from market players. These abrupt shifts disrupt supply-demand equilibrium, leading to price fluctuations and perceived scarcity. Given that 3-kilogram LPG is a critical commodity for both household and business use, any supply disruption can have widespread consequences, she explained.
Dr. Sukartini also highlighted the importance of enforcing penalties to ensure that 3-kilogram LPG subsidies are properly allocated. She suggested that the government could take cues from past evaluations of misallocated electricity and Pertalite fuel subsidies to refine the current approach.
淭here are always individuals攚hether business owners or households攚ho seek to exploit subsidies despite being ineligible. To mitigate this issue, the government should consider enforcing monetary penalties or social sanctions to deter misuse and improve subsidy distribution efficiency, she stated.
Ensuring policy oversight and compliance
The supply shortages triggered by the new policy have disrupted MSME operations, raising concerns about economic stability. However, Dr. Sukartini noted that no policy is immune to challenges, and gaps in implementation are inevitable.
She acknowledged the government檚 efforts in regulating subsidy distribution but emphasized the need for patience as adjustments are made. While these regulatory refinements may take time, she stressed the importance of continuous oversight to ensure the policy’s success.
淭he government is actively working on this issue. Our collective role is to support regulatory efforts by monitoring compliance and reporting any potential violations. It is also essential for consumers to reflect on whether they genuinely qualify for subsidies. If subsidized LPG is being used strictly for personal consumption rather than for profit-driven activities, then the matter warrants further discussion, she concluded.
Author: Raissyah Fatika
Editor: Yulia Rohmawati
