Decree of the Head of BPH Migas Number 82/PEDOMAN/BPH MIGAS/KOM/2025 Tightens Verification and Governance of Subsidized and Assigned Fuel Distribution Quotas

Introduction

On October 2, 2025, the Downstream Oil and Gas Regulatory Agency (Badan Pengatur Hilir Minyak dan Gas Bumi, "BPH Migas") issued the Decree of the Head of the Downstream Oil and Gas Regulatory Agency Number 82/PEDOMAN/BPH MIGAS/KOM/2025 on Guidelines for Determining the Volume Quota of Specific Types of Fuel and Special Assignment Types of Fuel ("Decree 82/2025"). Decree 82/2025 sets forth guidelines for the planning, distribution, fulfillment of technical documentation, and adjustment of volume quotas for Specific Types of Fuel (Jenis Bahan Bakar Minyak Tertentu, "JBT") and Special Assignment Types of Fuel (Jenis Bahan Bakar Minyak Khusus Penugasan, "JBKP") for businesses on a national scale.

The considering section states that Decree 82/2025 was issued to implement the mandate of Article 13 of BPH Migas Regulation Number 3 of 2023. Through these guidelines, BPH Migas establishes an annual mechanism for planning and distributing JBT and JBKP volume quotas to ensure the calculations are systematic and aligned with the needs of end consumers. Decree 82/2025 also governs the verification of quota proposals from businesses, operational facility standards for distributors, and fuel supply adjustment measures in the event of fuel scarcity.

Key Provisions

Annual Quota Planning and Business Entity Involvement

FIRST Dictum letter a establishes the volume quota planning guidelines. Annex I letters B and D stipulate that the quota calculation utilizes a regression method that takes into account national historical consumption data, Gross Domestic Product (Produk Domestik Bruto, "PDB") at constant prices, population size, and economic growth assumptions. Under certain conditions, data processing may utilize interpolation techniques if anomalies exist in the historical consumption data due to special circumstances. Assigned Business Entities (Badan Usaha Penugasan, "BUP") submit proposals for annual JBT and JBKP quota requirements based on requests from BPH Migas. BUPs may prepare these proposals using the calculation methods stipulated by BPH Migas or internal forecasting methods, which are subsequently evaluated by BPH Migas as a benchmark prior to discussion in a Committee Meeting.

Distributor Status and Volume Quota Distribution Deadlines

Annex I letter A number 5 states that distributors appointed by BUPs may originate from cooperatives, small enterprises, or national private business entities. Annex II Roman numeral I stipulates that BPH Migas submits a request letter for quota requirement proposals to regional governments, ministries, agencies, and Assigned Business Entities no later than the first week of October. Furthermore, these institutions and businesses submit their annual volume quota requirement proposals, supported by forecasting data, no later than the first week of November of the current year. If a BUP or regional government fails to submit the proposal or required supporting data, the Regulatory Agency determines the volume quota by considering, among other factors, the number and locations of Delivery Points (Titik Serah) (distributors), the realization of distribution in the preceding year, the results of guidance and supervision, and proportionality based on the stipulated quota.

Flexibility and Authority of Quota Adjustments by Business Entities

BUPs may adjust JBT and JBKP volume quotas per Delivery Point during operational activities. Such adjustments may only be implemented within the same regency or city and cannot alter the total quota amount for that region. BUPs are also required to submit a written report to the Head of BPH Migas regarding inter-distributor quota adjustments and the underlying reasons no later than 30 (thirty) calendar days from the adjustment date. If the quota adjustment crosses regency, city, or provincial borders, or involves adding new Delivery Points, the BUP must first submit an application to BPH Migas for verification. Provisions regarding quota adjustment flexibility and the aforementioned reporting obligations are set forth in Annex II Roman numeral II letter A. Quota adjustment proposals are subsequently evaluated during a periodic evaluation cycle conducted in April, July, and October for the current year, and no later than February for the following year.

Handling Scarcity and Extraordinary Circumstances

Decree 82/2025 also governs supply adjustment measures in the event of fuel scarcity caused by changes in government policies or extraordinary circumstances, such as natural disasters, riots, wars, or pandemics. Under such conditions, the Head of BPH Migas may issue a relaxation letter granting authority to BUPs or business entities executing the assignment to adjust JBT and JBKP volumes at the Delivery Point, regency/city, or provincial levels within a specified timeframe. These adjustments may be executed without waiting for a prior session, and are subsequently administered through a Committee Session no later than 1 (one) month after the relaxation letter is issued. Provisions regarding the adjustment mechanisms under conditions of scarcity or extraordinary circumstances are set forth in Annex II Roman numeral II letters B and C.

Verification Parameters for New Distributor Facilities or Delivery Points

FIRST Dictum letter b number 2 governs the implementation of on-desk verification for proposals to add new distributors. BUPs proposing such additions must ensure that the distributors fulfill the operational facilities and infrastructure requirements as stipulated in Annex III letter A. New distributors are, among other things, required to possess:

1. Closed Circuit Television (CCTV) or a camera system capable of monitoring distribution activities to End Consumers with a minimum recording retention of 30 (thirty) days;

2. Automatic Tank Gauge (ATG) devices;

3. Flow Meter devices; and

4. Electronic Data Capture (EDC) machines for transactions.

Technical Document Verification Obligations for Businesses Consumers

BUPs proposing quota allocations for business consumers across various sectors must attach operational and technical data as part of the verification process. This provision is set forth in Annex III letters B and C. The details of the documents and parameters that must be submitted include the following:

1. Micro Business Sector: micro businesses submit information regarding the number of prime movers, tools utilized in business activities, engine power, and engine operation duration.

2. Public Service Sector: service managers such as type C and D hospitals, public health centers, orphanages, nursing homes, and crematoriums attach the number of combustion or lighting engines utilized, engine power, and their operation duration.

3. Fisheries and Agriculture Business Sectors: fisheries businesses with vessels ranging from 1 to 30 Gross Tonnage detail the number of engines, engine power, and daily operation duration. For agricultural businesses, the land area for food crops or plantations is limited to a maximum of 2 hectares and must be accompanied by information regarding the agricultural equipment and machinery utilized along with their business power coefficients.

4. Special Transportation Sector: shipping business entities submit Ship Particulars, Gross Tonnage details, business licenses, ship safety certificates, Ship Operation Plans (Rencana Pengoperasian Kapal, “RPK”), route distances in nautical miles, speed in knots, and the actual number of trips per month.

5. Railway Sector: railway business entities report the number of locomotives, operational distances, trip frequencies based on the Train Travel Graph, total operational hours, and Specific Fuel Consumption specification documents for both locomotives and generators.

Prognosis Methods and Business Equipment Consumption Calculation Formulas

FIRST Dictum letter b number 3 governs the use of prognosis methods in quota distribution. In calculating fuel requirements for business consumers, these guidelines stipulate the use of specific formulas based on engine capacity and operation duration. Annex IV letters B and C outline several calculation methods that may be utilized, including:

1. Horsepower (HP) Formula:

L BBM HP = K HP x Equipment or Engine Power x t

(Note: t is the operation duration in hours, K HP for Micro Businesses is 0.184; Fisheries is 0.155; Agriculture is 0.157; Water Transportation is 0.138; and Public Services is 0.215).

2. Kilowatt (kW) Power Formula:

L BBM kW = K kW x Equipment or Engine Power x t

3. Special Ship Transportation Formula:

Fuel Volume (L) = Coefficient x (HP Engine Capacity x Number of Engines) x Travel Duration in Hours

(Note: The coefficient is 0.1 for River Transport and Traditional Shipping; 0.112 for Passenger and Pioneer Ships).

4. Railway Transportation Formula:

Total Fuel Volume = Locomotive Fuel Volume + Warming Up Fuel Volume + Generator Fuel Volume

Control Through National Quota Reserves

BPH Migas may reserve a portion of the JBT and JBKP Volume Quotas prior to the current year for control purposes. This provision is set forth in Annex IV letter D. The quota reserve may be released and distributed to BUPs if the results of quarterly prognosis evaluations in the current year indicate that the actual national fuel consumption level has the potential to exceed the previously allocated volume quota. This prognosis evaluation is conducted by considering national fuel consumption conditions excluding the reserve volume retained by BPH Migas.

Closing

Decree 82/2025 governs the procedures for planning, stipulating, and adjusting the volume quotas of Specific Types of Fuel and Special Assignment Types of Fuel for Assigned Business Entities. In its implementation, Assigned Business Entities are required to submit their annual quota requirement proposals no later than the first week of November of the current year. These proposals are submitted by attaching technical and operational data that support the fuel requirement calculations for each end consumer category. If a proposal is not submitted or the provided supporting data is inadequate, BPH Migas may determine the volume quota by considering the available parameters, including prior distribution realization and the conditions of delivery points in the relevant region. Decree 82/2025 also establishes operational facility requirements for new distributors or delivery points, including the obligation to install CCTVs with a minimum recording storage capacity of 30 days, Automatic Tank Gauges, Flow Meters, and Electronic Data Capture devices. In addition, BUPs may adjust quotas among distributors within a single regency or city, with the obligation to submit a written report to the Head of BPH Migas no later than 30 calendar days from the adjustment date. This regulation also contains mechanisms for quota adjustments through periodic evaluations, as well as distribution adjustment measures under conditions of scarcity or specific circumstances to maintain the availability of fuel supply for the public and businesses.