The government through general directorate of oil and gas, I gusti nyoman wiratmaja exclaimed that in 2017 government is to save amount of Rp 18.5 trillion of 3kg LPG gas use. The plan that LPG is not meant for the rich in the sense that only aimed for the use of poor family and small enterprises with the allocations of 3 tubes of house hold and 9 tubes of LPG gas for micro businesses per month.
According to wiratmaja the users of subsidized LPG gas currently reaches 54.90 million household and 2.29 million micro businesses.
The problem lies then that currently all the house hold ( not only the poor) can buy the 3 kg LPG gas in fact it is a subsidy for poor family and small business. The government plans to hold the closed distribution which means it's truly allocated for the poor and small enterprises.
Through the use of closed distribution, the user of household will drastically downshrink to 15.5 million households and 2.29 small businesses with the estimated budget Rp 10.39 trillion. Thus it will save Rp 18.5 trillion for the budget of 3kg LPG gas subsidy.
General directorate added that the use of closed distribution will also reduce mixing and leakage of LPG usage up to 15 percent.
The poor families and small businesses who are eligible to receive 3kg LPG gas also receive the identity card for their proofs of the 3kg LPG gas recipients. Furthermore, the electronic transaction will be applied to ensure the 3kg LPG subsidized gas meet the targeted recipients. The government will be in partnership with the banks to provide for electronic transactions.
Wiratmaja confirmed that the poor who do not have bank account will load in the LPG gas station in partnership with the bank.
Through this policy the state is not to discriminate the rich, on the otherhand the rich are advised to use 5.5 kg LPG gas instead.
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