Paser — The distribution of subsidized 3-kilogram LPG in Paser Regency, East Kalimantan, continues to face persistent issues such as mistargeting, stock shortages, and retail prices exceeding official limits. These findings were revealed in a study by Zainal Ilmi, Rifdan, Risma Niswaty, and Andi Kasmawati from Universitas Negeri Makassar, published in 2026 in the International Journal of Scientific Multidisciplinary Research (IJSMR). The study is significant because the 3 kg LPG subsidy remains one of Indonesia’s main energy assistance programs for low-income households, micro-businesses, fishermen, and farmers.
Since the kerosene-to-LPG conversion program began in 2007, subsidized LPG has become a critical household energy source across Indonesia. The policy was designed to improve efficiency, reduce fiscal burdens, and expand access to cleaner energy.
However, the reality on the ground remains complicated. In Paser Regency, consumers often struggle to find stock at official distribution points, while subsidized LPG is still widely sold at higher prices in informal markets. Ineligible middle- and upper-income households also continue to access the subsidy.
To investigate this issue, the research team used a qualitative case-study approach, gathering data through in-depth interviews, focus group discussions, field observations, and policy document analysis. The study involved local government officials, Pertamina, LPG agents, village authorities, and subsidy beneficiaries.
The findings show that the Paser local government has established several accountability mechanisms, including Regent Regulation No. 58 of 2019, which provides the legal framework for monitoring LPG distribution, enforcing price limits, and ensuring supply availability.
The government also introduced a Permanent Buyer List (DPT) to identify eligible beneficiaries. This system was developed collaboratively with village leaders, neighborhood officials, and LPG distributors to improve targeting accuracy.
According to the study, the DPT has helped reduce access by ineligible groups, but data updates remain a major challenge due to constant demographic and economic changes.
Paser Regency has also adopted digital tools such as MONICA LPG and the Merchant Application Pangkalan (MAP) to electronically record distribution transactions. These tools have improved transparency and traceability, making monitoring more efficient.
Despite these efforts, the study concludes that accountability remains largely procedural rather than outcome-based. Monitoring systems exist, but they have not fully ensured that subsidized LPG reaches the intended recipients.
The complexity of governance is one of the biggest barriers. Multiple institutions—including the central government, local authorities, Pertamina, regulators, distributors, and communities—share responsibilities, often creating blurred accountability when problems arise.
Geographical challenges also play a major role. With ten districts, 139 villages, and difficult infrastructure conditions, supervision and equal distribution remain difficult.
The researchers argue that stronger data integration between central and local governments, better supervisory capacity, and wider community participation are essential for improving accountability.
The study highlights an important lesson: the success of energy subsidies depends not only on budget size but also on governance quality. More accountable distribution systems could reduce subsidy leakages, improve fairness, and strengthen public trust.
As household energy demand continues to rise, reforming subsidized LPG distribution is becoming increasingly urgent. This study suggests that digitalization, institutional collaboration, and public participation may be the key foundations for a fairer and more sustainable energy subsidy system.
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