Go Collaborative, Pertamina and the Ministry of Home Affairs Accelerate Pertashop

Jakarta, October 28, 2021 – Minister of Home Affairs (Mendagri), Muhammad Tito Karnavian, asked regional heads to support the implementation of the Pertashop program. The cooperation between PT Pertamina (Persero) and the Ministry of Home Affairs (Kemendagri) is considered to have various positive impacts on rural communities. For example opening up employment opportunities, facilitating access to fuel (BBM), and accelerating economic recovery amid the Covid-19 pandemic.

"We hope that this program can be supported by regional heads because the benefits are very positive," said the Minister of Home Affairs during the Central and Regional Coordination Meeting for Accelerating the Implementation of the Pertashop Program in the Regions held in a hybrid manner from Sasana Bhakti Praja Building C, Ministry of Home Affairs Office, Jakarta, Wednesday (27/10/2021).

For this reason, the Minister of Home Affairs explained several steps that regional heads could take to support the Pertashop program. One of them is, facilitating Pertashop development permits by referring to the Letter of the Minister of Home Affairs regarding Pertashop development permits. Not only that, but regional heads can also continue to build cooperation with relevant ministries, such as the Coordinating Ministry for Maritime Affairs and Investment, the Ministry of Energy and Mineral Resources, and others. "The point is to simplify Pertashop's licensing," said the Minister of Home Affairs.

In addition, the Minister of Home Affairs also asked regional heads to intensively socialize and encourage village heads to be enthusiastic about welcoming the Pertashop program. Regional heads were also asked to assist village heads in choosing the best land for the Pertashop unit construction site.

President Director of Pertamina, Nicke Widyawati, appreciated the support from the Ministry of Home Affairs in accelerating Pertashop, especially in accelerating the licensing process and extending the permit dispensation.

"Pertashop has encouraged an increase in the number of sub-districts with official fuel distribution agencies from 3,300 sub-districts to 4,400 sub-districts. It means that previously only 47% of sub-districts had distributors. Currently, it has increased to 62% of sub-districts throughout Indonesia," said Nicke.

According to Nicke, Pertamina has the mandate to implement Energy Law No. 30 of 2007. In which Pertamina maintains adequate supply nationally while providing equal access for all Indonesians. Nicke added that Pertashop needs to be encouraged because it fulfills people's needs in the villages. In addition to accessibility that provides convenience for the community, Pertashop is also affordable.

"Pertashop guarantees the price and quality of fuel for rural communities, considering the selling price of fuel at Pertashop is the same as at petrol stations. The average distribution of quality fuel through Pertashop continues to increase, even in some locations it reaches 2,000 liters per day," added Nick.

The presence of Pertashop in remote villages, added Nicke, is one of the solutions to build energy security and become a new locomotive for village economic development and job creation.

In the construction of Pertashop, Nicke added, Pertamina emphasized a high Domestic Component Level (TKDN) to encourage the development of domestic industries.

"All Pertashops are produced domestically. We play a role in increasing TKDN, meaning that the growth and improvement of the domestic industry have started, and it can also reach MSMEs," said Nicke.

With a high TKDN, Pertashop can create jobs from their respective village communities. Moreover, Pertamina also provides training for skills that can be developed and given to the community.

In the development of pertashop, Pertamina also cooperates with State-Owned Association Banks (Himbara) and other national private banks to provide capital with easy schemes.

"If Pertashop is built, it will grow the village's economic center. This is following the President's Nawacita, that economic growth starts from the farthest point, namely in the village," said Nicke.**

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