Indonesia caps fuel price at Rp15,000 for mid-to-large fishing boats

Jakarta (ANTARA) - Indonesia has set a special diesel fuel price of Rp15,000 (around US$0.83) per liter for fishing vessels with capacities of 30 to 200 gross tons (GT) to help reduce operating costs in the fisheries sector.

"The lowering of operating costs will enable fishers to increase their productivity at sea, help ensure a stable fish supply for consumers and industry, and strengthen the competitiveness of Indonesia's fisheries sector," Marine Affairs and Fisheries Minister Sakti Wahyu Trenggono said in a press statement received here on Wednesday.

The special fuel pricing policy follows President Prabowo Subianto's directive during a limited cabinet meeting with several ministers at his residence in Hambalang, Bogor, on Monday.

The president instructed the government to provide diesel fuel at a special price of Rp15,000 per liter for commercial fishing operators using vessels with capacities ranging from 30 to 200 GT.

The fuel price support will not be financed through the state budget (APBN). Instead, it will be funded by the Estate Crop Fund Management Agency (BPDP), a mechanism the government says will maintain fiscal discipline.

Previously, commercial fishing operators using vessels in the 30-200 GT category paid Rp21,300 (approximately US$1,18) per liter for diesel fuel.

The Ministry of Marine Affairs and Fisheries (KKP) said the policy is significant because fuel accounts for the largest share of fishing costs, representing more than half of a vessel's total operating expenses.

The ministry expects the lower fuel price to improve cost efficiency while supporting productivity and the long-term sustainability of Indonesia's fisheries sector.

Director General of Capture Fisheries of the ministry Lotharia Latif said the ministry will formulate regulations and distribution mechanisms for the fuel program in coordination with relevant ministries and agencies to ensure it reaches eligible beneficiaries.

"We will prepare the regulations, distribution mechanisms, and governance framework for the program together with the relevant ministries and agencies to ensure the assistance is well targeted and to prevent potential irregularities and misuse in the field," Latif said.

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Translator: Bayu Prasetyo

Editor: Arie Novarina

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