Jakarta (VNA) – Indonesia is stepping up its sustainable blue economy strategy by introducing subsidised fuel for medium-sized fishing vessels, aiming to lower operating costs, strengthen the competitiveness of the fisheries sector and enhance national food security.
President Prabowo Subianto has approved a preferential fuel price of 15,000 IDR (0.83 USD) per litre for fishing vessels with a gross tonnage of 30–200 GT. The subsidised price is significantly lower than the estimated production cost of around 18,600 IDR per litre and the current commercial diesel price of approximately 21,300 IDR per litre.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the programme will run for six months, with a fuel quota of 400,000 tonnes.
Rather than drawing on the State budget, the gap between the subsidised price and production costs will be financed by the Palm Oil Plantation Fund Management Agency, helping ease fiscal pressure while providing targeted support for the fisheries sector.
Minister of Energy and Mineral Resources Bahlil Lahadalia said the ministry will soon issue implementing regulations. Fuel distribution will be coordinated with the Ministry of Marine Affairs and Fisheries to ensure the subsidies reach eligible recipients and prevent misuse of the programme.
Indonesia already provides subsidised fuel at 6,800 IDR per litre for fishing vessels below 30 GT. By extending preferential pricing to medium-sized vessels, the government expects to significantly reduce production costs, encourage offshore fishing, increase fishery output and reinforce the maritime economy as a key driver of national economic growth./.
