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Expert calls for SMEs to be prioritized in purchase of subsidized LPG canisters

Source
Tempo - June 19, 2023

Riani Sanusi Putri, Jakarta – The Center of Economic and Law Studies (CELIOS) director Bhima Yudhistira gave his opinion on the government's policy on restricting the purchase of subsidized 3-kilogram LPG (Liquefied Petroleum Gas) canisters. He asserted that Small-medium Enterprises or SMEs must be prioritized as rightful recipients and not limited to the criteria of poor households.

"There are 65 million SMEs in Indonesia. Don't they also have the same right to receive the 3-kg LPG canisters?" said Bhima to Tempo on June 18.

He insisted that it is unfortunate that the government has yet included SME businesses as rightful recipients, even though math suggests not including this group will greatly affect production costs and possibly a reduction in income.

However, he expressed support for the government's initiative to record rightful recipients of the government subsidy program through data logging names and addresses. 3-kg LPGs are feared to be scarce in terms of availability as this restriction could spark hoarding.

Meanwhile, the Energy and Mineral Resources Ministry confirmed the introduction of the restrictions on the purchase of 3-kg LPGs to regulate and monitor the commodity's distribution. This policy will be introduced in early 2024.

Source: https://en.tempo.co/read/1738804/expert-calls-for-smes-to-be-prioritized-in-purchase-of-subsidized-lpg-canister

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