Indonesia's Fuel Subsidies Favor Industrial Vessels Over Small Fishermen

The Indonesian government has set the price of non-subsidized diesel fuel at Rp15,000 per liter for vessels measuring between 30 and 200 gross tons (GT). This policy, announced by Coordinating Minister for Economic Affairs Airlangga Hartanto on Monday (13/7/26), provides an incentive of Rp3,600 per liter from the original non-subsidized price of Rp18,600 per liter. The incentive fund is subsidized through the Oil Palm Plantation Fund Management Agency (BPDP). In the initial phase, the government has allocated a quota of 400,000 tons, or 400 million liters, for the next six months. Sakti Wahyu Trenggono, Minister of Maritime Affairs and Fisheries, pledged during a working meeting with Commission IV of the House of Representatives on Thursday (16/7/26), that the distribution of non-subsidized fuel incentives would be precisely targeted. To ensure this, vessel owners are required to report their refueling plans and activate their vessel monitoring systems during refueling. The Ministry of Maritime Affairs and Fisheries (KKP) estimates that with 6,712 vessels, the demand for fuel could reach at least 399 million liters by the end of 2026. This amount is intended to accommodate needs across all Indonesian Fisheries Management Areas (WPPNRI). However, Dani Setiawan, Chairman of the Indonesian Traditional Fishermen Union (KNTI), stated that this amount is very large when compared to similar subsidies provided to small and traditional fishermen. "Recipients of the incentives must be honest and transparent, and utilize the subsidies wisely and appropriately," he explained on Saturday (18/7/26). Dani added that there are other, more important issues currently, particularly concerning governance. This policy could lead to dissatisfaction, with concerns that support for industrial vessels is being prioritized while small-scale fishermen continue to struggle with high fuel costs. The fishing sector is a vital pillar of Indonesia's economy, but criticisms about the unequal distribution of its benefits persist.