Govt to set special fuel price for 30-200 GT fishing vessels

Indonesian authorities have announced a new fuel pricing policy aimed at supporting commercial fishing operators using vessels ranging from 30 to 200 gross tons. According to officials, the government will implement a special fuel price of Rp15,000 (approximately US$0.83) per liter for these operators, effective from the upcoming period. This decision was made during a presidential directive issued after a meeting held at the Hambalang Residence in Bogor District, West Java, on Monday. The announcement was made by Coordinating Minister for Economic Affairs Airlangga Hartarto, who stated that the policy was discussed and approved during the meeting led by President Prabowo Subianto. Hartarto noted that the current non-subsidised fuel price stands at Rp21,300 per liter, while smaller fishing vessels under 30 GT already benefit from a subsidized rate of Rp6,800 per liter. He emphasized that the proposed special rate would help reduce operational costs for mid-sized fishing operators. The minister also revealed that the average domestic production cost of diesel is approximately Rp18,600 per liter. This means there is a gap of about Rp3,600 per liter between the production cost and the proposed special price. To cover this difference, the Plantation Fund Management Agency (BPDP) will provide the necessary financial support instead of relying on the state budget. Hartarto confirmed that the BPDP has sufficient funds to manage the initiative, which includes a quota of 400,000 tons over a six-month period. Minister of Energy and Mineral Resources Bahlil Lahadalia supported the move, stating that the policy aims to offer stability to businesses within the fisheries sector. He pointed out that rising fuel prices have been a concern for operators, and the new pricing structure is intended to ease their financial burden. Lahadalia assured that his ministry will promptly issue a formal decree to implement the policy and reiterated that the funding will come from non-state budget sources. The policy is expected to take effect shortly, with the Ministry of Energy and Mineral Resources working to finalize the regulatory framework. Officials believe that the adjusted fuel price will contribute to maintaining the competitiveness of the fisheries industry, particularly for medium-sized operators who face higher operational costs compared to smaller fleets. This initiative comes amid broader discussions about energy affordability and economic stability in Indonesia. The government has been monitoring fuel prices closely, especially in light of recent fluctuations in global oil markets and currency exchange rates. While the new pricing is targeted specifically at the fishing sector, it reflects a broader strategy to balance economic pressures with fiscal responsibility. As the implementation date approaches, stakeholders in the fisheries sector are preparing for the changes. Operators using vessels between 30 and 200 GT are anticipated to see immediate relief in their fuel expenses, which could positively impact their overall profitability. The success of the policy will depend on how effectively the BPDP manages its allocated resources and whether the new pricing aligns with actual market conditions.