Assignment and Commerce of Subsidized Liquified Petroleum Gas (LPG) Distribution by SOE Subsidiaries from the Perspective of Business Competition

Abstract

Energy demand, especially 3 Kg LPG (Subsidized) has increased by more than 700% compared to the beginning of the resistant oil conversion program to LPG in 2007. The distribution of 3 Kg LPG has also been evenly distributed throughout Indonesia. Until now, 95% of LPG usage is included in the Subsidy LPG category. With such a large consumption and wide distribution range, the trading system for distributing 3 Kg LPG is a highlight for all parties, especially when there is a scarcity of LPG in the community. The assignment of distributing 3 kg LPG is currently carried out by PT Pertamina Patra Niaga, which is one of Pertamina's sub-holdings. The research method to be used is normative juridical. Normative research is research focused on examining the Government's assignment to SOEs and SOE subsidiaries in the distribution of subsidized LPG from the perspective of business competition law. Although SOE subsidiaries do not include SOEs because their shares are not owned by the state, but explicitly Assignments can be given to SOEs and SOE Subsidiaries. And because this is an assignment, the distribution of subsidized LPG cannot be categorized as an act of unfair business competition.