Increase Stock, Pertamina Urges the Wealthy to Use Non-Subsidized LPG

Dream - The government plans to limit the sale of 3-kilogram (Kg) LPG gas only to official distributors intended for the poor. This plan is also the government's commitment to be consistent with the message displayed on the side of the cylinder.

The Secretary of Pertamina Patra Niaga, Irto Ginting, urges people who are capable to use 5.5 kg or 12 kg Non-Subsidized LPG.

"We urge those who are capable to use Non-Subsidized LPG," he said as quoted from Liputan6.com, Monday, January 16, 2023.

Irto added that the government will increase the stock according to the needs, in response to complaints from several people who have difficulty obtaining 5.5 kg LPG.

"We will increase it according to the needs," he said.

The sale of subsidized LPG will be integrated with the data of the Acceleration of Extreme Poverty Elimination (P3KE). For people who are not listed, it will be loaded based on their ID card or family card.

With the new distribution, the use of 3 kg LPG is expected to be targeted.

Currently, a trial process is being carried out in the Cipondoh District in Tangerang City, the Ciputat District in South Tangerang City, the Ngalian District in Semarang City, the Batu Ampar District in Batam City, and the Mataram District in Mataram City.

Irto explained that for the next regions to be tested, they are still awaiting the results of the current trial.

"We are still coordinating with the regulator. Let's wait for the review," said Irto.

Small Shops Not Allowed to Sell 3 Kg LPG, Here are the General Requirements to Become an Official Distributor

Dream - The government will limit the sale of 3-kilogram (Kg) LPG gas only to official distributors. As a result, small retailers such as small shops can no longer freely sell 3 KG LPG.

The Secretary of Pertamina Patra Niaga, Irto Ginting, said that there are currently 220,000 registered official distributors in Pertamina.

These official distributors are currently making adjustments to implement the LPG distribution restrictions.

"There are more than 220,000 sub-distributors or distributors," said Irto as quoted from Dream, Merdeka.com, Saturday, January 14, 2023.

In addition, in 2022, there were also 22,000 new distributors. These new distributors are also making adjustments to become official distributors of LPG.

"In 2022 alone, there were 22,000 additional sub-distributors or distributors," he said.

Requirements to Become an Official Distributor of 3 Kg LPG Pertamina

The administrative requirements for obtaining a New License as a 3 Kg LPG Distributor are as follows:

1. Establishment Deed of Business Entity (such as Limited Liability Company or Cooperative) and its amendments, which have been approved by the competent authority.

2. Taxpayer Identification Number (NPWP).

3. Bank Reference Letter.

4. Trading Business License (SIUP).

5. Company Registration Certificate (TDP) for Legal Entities.

6. Disturbance Permit and/or Business Location Permit (SITU) in accordance with the provisions of the local government.

7. Building Permit (IMB).

8. Police Record Certificate (SKCK) from the local police for all Directors and Commissioners listed in the company's deed.

9. Management Structure and Number of Employees.

10. List of Distributors and Outlets of 3 kg LPG along with the Contract Agreement between the distributor and the outlet.

11. Statement Letter on stamped paper:

- Willing to finance all facilities and infrastructure of the LPG Distributor
- Willing to comply with all laws and regulations, Pertamina, and the local government.
- Integrity Pact

12. LPG Distributor Certificate issued by the relevant agency.

Note: points 1-11 are submitted before signing the 3 Kg LPG agency contract. While point 12 is submitted after signing the 3 Kg LPG agency contract.

Requirements for Facilities and Infrastructure of 3 Kg LPG Distributor

1. Owning land and buildings in the form of offices, outlets, and warehouses owned or rented (which are proven by ownership/rental documents with a minimum area of 165 M2 that meet the requirements in terms of usefulness, commerciality, safety, environmental protection, and security.

2. The business place/warehouse is equipped with ventilation and other facilities in accordance with PT. PERTAMINA (Persero)/HSE regulations, including:

- Maximum ventilation of 30 cm above the warehouse floor surface and 40% of the warehouse area.

- The warehouse floor is as high as a Truck bed (stage) that can be directly accessed for loading/unloading cylinders from and into transport fleets.

- The warehouse is made of non-flammable material and does not cause sparks when in contact with cylinders.

- Equipped with a Gas Detector.

- Equipped with explosion-proof electrical equipment.

- The distance between cylinder storage and walls and outlets is at least 3 m.

- Maximum stacking of 4 stacks of filled cylinders and 5 stacks of empty cylinders.

3. Have a minimum of 1 truck in operational condition that meets the applicable requirements, as evidenced by vehicle documents with a maximum vehicle age of 10 years.

If necessary, the distributor has 1 (one) Pick Up unit to reach areas that cannot be accessed by a Truck.

4. Have a usable bench-type weighing scale with a minimum capacity of 25 kg, at least 1 (one) unit that has been sealed by the Metrology Agency and calibrated annually.

5. Have a Fire Extinguisher placed in the Warehouse, outlet, and vehicles according to the information on page 42 (still valid from the relevant agency). The Fire Extinguisher must be placed in an easily accessible location, especially near the entrance door.

6. Install warning and prohibition signs in the warehouse & outlet (including signs warning No Smoking, Flammable Gas, No Dropping Cylinders).

7. Provide employees with an Identity Card, uniform, clearly stating the name of the Distributor, LPG logo, and the name of the respective employee.

8. Provide and ensure the installation of plastic wrap that displays the identity, address, and telephone number of the LPG Distributor on the marketed LPG cylinders.

9. Have IT facilities, at least 1 (one) computer or laptop, printer, telephone, and internet connection, as well as an active email address.

10. The warehouse and outlet are equipped with nameplates according to the provisions set by Pertamina.

11. Have facilities and services including the LPG Distributor Hotline and delivery vehicles (pick-up).