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Open Access
Research article

Stakeholder Dynamics in the Distribution of Subsidized Fuel for Fishermen in Bandar Lampung City, Indonesia: Challenges and Strategic Implications

rostuti lusiwati sitanggang1,
indra gumay febryano2,3*,
abdullah aman damai2,3,
hari kaskoyo2,3,
maya riantini2,3
1
Fisheries Inland Water Research and Fisheries Extension, 30111 Palembang, Indonesia
2
Graduate Program of Marine and Coastal Management, Universitas Lampung, 35145 Bandar Lampung, Indonesia
3
Graduate Program of Environmental Science, Universitas Lampung, 35145 Bandar Lampung, Indonesia
Journal of Sustainability for Energy
|
Volume 4, Issue 1, 2025
|
Pages 18-33
Received: 12-25-2024,
Revised: 01-29-2025,
Accepted: 02-09-2025,
Available online: 02-17-2025
View Full Article|Download PDF

Abstract:

The effective implementation of subsidized fuel distribution for fishermen necessitates the coordinated involvement of multiple stakeholders to ensure equitable and efficient allocation. This study examines the roles, influences, and interactions of stakeholders in the distribution process, with the aim of formulating an optimal distribution strategy. A case study approach is employed, integrating qualitative research methods such as in-depth interviews, participatory observation, focus group discussions, and document analysis. Stakeholder Mapping and a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis are utilized to assess stakeholder influence and interests. The findings indicate unanimous support for the subsidized fuel distribution policy in Kangkung Village, with no opposition identified among stakeholders. The Downstream Oil and Gas Regulatory Agency emerges as the most influential entity, while fishermen and the Mina Jaya Village Unit Cooperative exhibit the weakest capacity in policy implementation. Based on influence-interest analysis, key stakeholders include the Downstream Oil and Gas Regulatory Agency, Pertamina Patra Niaga (PPN), fuel distribution companies, and fishermen. Given these dynamics, an aggressive strategy is recommended for the Marine and Fisheries Service Office of Bandar Lampung City to enhance accessibility and ensure the efficient allocation of subsidized fuel. Strengthened collaboration between the Bandar Lampung City Government and fuel stations is identified as a critical measure to facilitate streamlined access to subsidized fuel for local fishermen.
Keywords: Fishermen, Subsidized fuel, Stakeholder analysis, Policy implementation, Strategic distribution

1. Introduction

The subsidy program is one of the government’s initiatives to ensure fuel accessibility across all levels of society. Fuel subsidies aim to increase economic growth and reduce price disparities in various regions. The implementation of subsidized fuel in Indonesia is a form of public service in the context of improving people's welfare [1]. In 2019, the industrial sector consumed the largest share of petroleum at 40%, followed by the transportation sector at 30% and households at 16%. Among all available energy sources, petroleum accounted for the highest proportion of fuel consumption at 46% [2]. The regulation of subsidized fuel distribution in Indonesia still provides opportunities for the upper middle class to control subsidized energy consumption. Subsidized fuel is allocated to consumers across various sectors and can be accessed through procedures established by specific regulations [3]. These regulations are set by the government and tailored to the particular conditions of each sector. Furthermore, it is said that the government needs to revise several regulations, so that the implementation of the policy can not only provide fiscal savings, but also provide high justice to users of subsidized fuel.

In the marine and fisheries sector, the provision and deployment of subsidized fuel refer to Law No. 22 of 2001 concerning oil and natural gas. The provision, distribution, and retail selling price of subsidized fuel are regulated in Presidential Regulation No. 117 of 2021 concerning the Third Amendment to Presidential Regulation No. 191 of 2021. The sustainability of small-scale fisheries businesses is influenced by economic aspects, namely business profits, crew income, and investment feasibility [4]. The income of small fishermen is unpredictable and always fluctuates. Access to subsidized fuel for the viability of their business is one of the government's services for small fishermen. Fuel is essential to the operations of fishers.

According to the study's findings, a number of nations assist the marine fisheries industry. Fuel expenses for fishing operations make up over 75% of total expenses in Andhra Pradesh, India. For small fishermen, the government thus offers subsidies for kerosene and diesel fuel [5]. The Ghanaian government offers fishermen premix, a type of special fuel subsidy. With an octane value of 82, Premix is a domestic fuel blend that is comparable to gasoline (Chase Petroleum Ghana Limited) [6]. In the meantime, the Sri Lankan government discontinued fuel subsidies in 2013 and substituted a new policy—fishing technology—which is thought to be more beneficial for the development of fisheries [7].

The implementation of subsidized fuel for fishermen faced a number of problems [8]. One of these problems was that fishermen found it difficult to make purchases at the fishermen's fuel station (Stasiun Pengisian Bahan Bakar untuk Nelayan/SPBN). Fishermen prefer to buy from merchants because of this problem. Fishermen can make payments for fuel purchases at retailers when they have sold their catch. In addition, fishermen have difficulty obtaining subsidized fuel at the fishermen's fuel station. The difficulties faced by fishermen in Marauke Regency in obtaining subsidized fuel, including that fishermen must have supporting documents according to their domicile. Other obstacles include very limited fuel quotas and prices that do not comply with government regulations. This causes subsidized fuel for fishermen to only be accessible to certain groups [5]. Distribution of subsidized fuel for fishermen in Soropia District, Konawe Regency, Indonesia, was hampered by the considerable distance from the fishermen's location to the office that handles licensing for purchasing subsidized fuel [9].

Regarding access to fuel by fishermen, the central government plays an important role in controlling the entire flow of subsidized fuel supply from upstream to downstream. This is understandable because fuel is a vital commodity. The central government cannot carry out this task alone without intervention from other parties. The other parties referred to are agencies or organizations that contribute to this activity, in accordance with the duties and authorities set. The central government assigns this task and authority to the Ministry of Energy and Mineral Resources (Kementerian Energi dan Sumber Daya Mineral/KESDM), the Downstream Oil and Gas Regulatory Agency (Badan Pengatur Hilir Minyak dan Gas/BPH Migas), the Ministry of Maritime Affairs and Fisheries (Kementerian Kelautan dan Perikanan/KKP), implementing companies, distributors, and regional governments. The implementation of governance as meaningful as partnership, collaboration, and networks, with an emphasis on the involvement of stakeholders, both government and non-government [10].

In addition to the central government, the existence of provincial and regional governments also holds a strategic position as part of the fuel distribution chain for fishermen. In general, the series of subsidized fuel distribution procedures is a complex system involving various stakeholders. Stakeholders as parties affected by policies and can influence policies [11]. Stakeholders in the distribution of fuel subsidies for fishermen are State-Owned Companies (Badan Usaha Milik Negara/BUMN), companies or private parties as distributors of fuel, and fishermen as recipients of the subsidy program. PT (Perseroan Terbatas/PT) Pertamina is engaged in the oil and gas business sector, including exploration, exploitation, refining, processing, transportation and sales. PT PPN is a commercial & trading subholding of PT Pertamina, running a chain of downstream business activities. All stakeholders and their interactions greatly influence the implementation of this activity. The government usually behaves more leniently and conservatively towards all program objectives [12]. It is crucial to consider the role of stakeholders in the implementation of subsidized fuel access for fishermen based on their influence (power), interests, and interactions with other actors. The purpose of this research is to examine the roles, stakeholders, and strategies involved in providing fishermen in Kangkung Village, Bumi Waras District, Bandar Lampung City, with subsidized fuel.

2. Method

The study was conducted from August to November 2024 at Kangkung Village, Bumi Waras District, Bandar Lampung City. The study combined a case study methodology with a qualitative approach. Participatory observation, focus groups, in-depth interviews, and documentation studies were used to gather data. Purposive sampling was employed in in-depth interviews. Seven stakeholders, including fishermen as users, were identified in the preliminary study as being either directly or indirectly involved in the process of delivering fuel for fishermen. This became the basis for selecting key informants to be interviewed. Specifically, fishermen selected as key informants were fishermen who used diesel fuel (3 people) and Pertalite (3 people). All fishermen anchored their ships and were domiciled in Kangkung Village. Key informants were interviewed in-depth in the following ways:

a. Marine and Fisheries Service Office of Bandar Lampung City (Dinas Kelautan dan Perikanan Kota Bandar Lampung/DKP Kota Bandar Lampung): 1 person

b. Harbormaster's and Class I Port Authority Office Panjang (Kantor Kesyahbandaran dan Otoritas Pelabuhan/KSOP): 1 person

c. Mina Jaya Village Unit Cooperative (Koperasi Unit Desa/KUD): 1 person

d. PT PPN Regional Office for Southern Sumatera (PPN Regional Sumbagsel PT PPN): 1 person

e. SPBN (Stasiun Pengisian Bahan Bakar untuk Nelayan/SPBN) PT Pertamina Manager: 1 person

f. SPBN PT Aneka Kimia Raya (Aneka Kimia Raya/ PT AKR) Manager: 1 person

g. Fishermen in Kangkung Village: 6 people

The purpose of the in-depth interview question guideline draft was to investigate the perspectives, experiences, and roles of stakeholders in the implementation of policies. Depending on the requirements of the study data, questions might be expanded and refined. The purpose of Focus Group Discussions is to gather information by discussing fuel distribution issues, gather resources for policy review, and develop solutions. All parties involved were invited to participate in this conversation, including the local fisherman, PT PPN, SPBN, and the Bandar Lampung City administration.

Data were analyzed using Policy Implementation Mapping [13], Power versus Interest Grid [14], and SWOT Analysis [15].

Policy Implementation Mapping analysis aims to identify strategies during program/policy implementation based on stakeholder power sources. Identification using the Ethical Analysis Grid Matrix to more easily understand who the stakeholders are who support and who oppose.

Power versus Interest Grid (player, context setters, subject, and crowd) aims to develop a follow-up strategy for a problem that focuses on power and interest. Power can be assessed from a person's potential to influence policy, while interest is assessed from the level of active involvement in a policy [13].

SWOT analysis describes the condition and evaluates a problem based on internal factors (strengths and weaknesses) and external factors (opportunities and threats) of DKP Kota Bandar Lampung. The SWOT matrix is very important to help in developing 4 types of strategies, namely: S-O Strategy, W-O Strategy, W-T Strategy and S-T Strategy. To determine the SWOT strength position map (grand strategy), it is necessary to compile the External Factor Analysis Strategy (EFAS) matrix by weighting and rating external factors and internal factors Internal Factor Analysis Strategy (IFAS). The weighting and rating of each internal and external strategy is carried out by expert judgment in the field of public policy so that the analysis results are more accurate and relevant.

Similar research is still very lacking by researchers. Generally, studies on subsidized fuel for fishermen aim to measure the impact of subsidies on fishermen's income. Stakeholder analysis is very important to be carried out as one of the materials for program evaluation so that policy objectives can be achieved.

3. Results and Discussion

3.1 Identification of Stakeholders in Policy Implementation

Analyzing stakeholder engagement is aided by stakeholder identification. A number of stakeholders with varying roles are involved in the distribution of subsidized fuel for fishermen in Kangkung Village (Table 1).

Fishermen who are consumers/users of subsidized fuel are fishermen who have vessels with a capacity of 1-30 GT. The government regulates the provision, distribution, and retail selling price of fuel via Presidential Regulation No. 117 of 2021, which governs consumers in the fishing industry who are eligible to receive subsidized fuel. Fishermen having service documents in Bandar Lampung are eligible to purchase subsidized fuel from both inside and outside the city. Fishermen who are served must have a letter of recommendation issued by the relevant agency, in this case the DKP Provinsi Lampung and the DKP Kota Bandar Lampung.

SPBN PT Pertamina is located in the area of the Technical Service Implementation Unit (Unit Pelayanan Teknis Daerah/UPTD) of the Lempasing Fisheries Port of Lampung Province in Way Tataan Village, Teluk Betung Timur District, Bandar Lampung City. This SPBN is a partner of PT Pertamina which is bound by a cooperation agreement between KUD Mina Jaya and PT Pertamina. PT Pertamina has changed its form to a Limited Liability Company engaged in the energy, petrochemical and other business sectors that support PT Pertamina's business both domestically and abroad, which focuses on market mechanisms. SPBN PT Pertamina manages the distribution of subsidized fuel of the diesel type for fishermen since 2004 until now. The duties and authorities of the SPBN PT Pertamina are as follows:

- Serving the purchase of fuel for fishing boats that have recommendation letters and other permits.

- Conducting a recapitulation of ships served for 6 months. Because there are usually changes in data on ships that have just registered as customers, ships that have stopped operating, or ships that have been sold. This data is submitted to PT PPN in May and December every year.

- Provide fisherman with a subsidized fuel quota based on the ship's engine power, as per BPH Migas' calculation guidelines.

- Provide monthly sales reporting based on daily sales recapitulation to the DKP Provinsi Lampung and PT PPN.

Table 1. Stakeholders in the distribution of fuel subsidies for Kangkung Village Fishermen, Bumi Waras District, Bandar Lampung City

No.

Institution/Individual

Authority/Interest

1

Fishermen

Customers or users of subsidized fuel

2

SPBN PT Pertamina

Fishermen Fuel Station

3

SPBN PT AKR

Fishermen Fuel Station

4

KUD Mina Jaya

Second Party (contract holder with Pertamina Company)

5

KSOP Panjang

Issuing ship letters/documents E-pas small/Pas Besar

6

Marine and Fisheries Service Office of Lampung Province (Dinas Kelautan dan Perikanan Provinsi Lampung/DKP Provinsi Lampung)

Issuing a recommendation letter for purchasing subsidized fuel for fishermen. Ensure the use of recommendation letters is appropriate and in volume

7

Marine and Fisheries Service Office of Bandar Lampung City (Dinas Kelautan dan Perikanan Kota Bandar Lampung/DKP Kota Bandar Lampung)

Issuing a recommendation letter for purchasing subsidized fuel for fishermen. Ensure the use of recommendation letters is appropriate and in volume

8

PT PPN

Business Entities that serve partners (second parties; SPBN and filling station (Stasiun Pengisian Bahan Bakar untuk Umum/SPBU))

9

BPH Migas

Policy determinant for subsidized fuel for fishermen (Regulator) and supervision

Source: Processed Data, 2024

The Bandar Lampung City Government owns the UPTD Port area where the SPBN PT AKR is situated, Lempasing, Way Tataan Village, East Teluk Betung District, Bandar Lampung City. This SPBN belongs to PT AKR, which has managed the distribution of subsidized diesel fuel for fishermen since 2010. The duties and authorities of SPBN PT AKR are to serve the purchase of fuel for fishing vessels that have a letter of recommendation and other permits. This SPBN is also authorized to propose subsidized fuel quotas for fishermen to the Lampung Branch Office of AKR. This proposal was submitted to PT AKR Head Office to be submitted to BPH Migas. As accountability to the agency issuing the recommendation letter and the company, SPBN provides monthly sales reporting from daily sales recapitulation to PT AKR Lampung Branch and DKP Kota Bandar Lampung.

Kangkung Village, Bumi Waras District, Bandar Lampung City is where KUD Mina Jaya is situated, which was established in 1940 as a pioneering organization of fisheries cooperatives in Lampung Province. The number of members is 700 people, including inactive members, consisting of most fishermen and the rest being fish marketers. Distributing discounted fuel to fishermen is one of KUD Mina Jaya's commercial ventures. KUD Mina Jaya and PT Pertamina, the second entity involved in the delivery of subsidized gasoline for fishermen, are connected by a cooperative relationship. In accordance with the agreement, KUD Mina Jaya contracted with partners who presently oversee SPBN PT Pertamina in Lempasing to handle management. Every month, KUD Mina Jaya receives a share of the profits from the SPBN manager PT Pertamina. KUD Mina Jaya does not supervise the operation of the SPBN and is not supervised by PT Pertamina. Reporting on the implementation of the distribution of subsidized fuel is carried out by the SPBN manager to DKP Provinsi Lampung and PT PPN.

KSOP Panjang is a technical implementation unit of the Ministry of Transportation which is tasked with preparing ship documents, especially those handled in the legal status and ship certification sector. In relation to the legal status of ships in Law No. 17 of 2008 concerning Shipping Article 163 paragraph 2, there are 3 categories of ship documents based on the volume of the ship, namely: Small E-Pas (ships 1-6 GT), Large Pas (ships 7-175 GT), and Sea Letter (ships >175 GT). KSOP does not have a special role in distributing subsidized fuel for fishermen [16]. But fishermen usually make the letter/document for the requirements in purchasing subsidized fuel. Small/large E-PAS documents are required by the service/agency for issuing recommendation letters.

Facilitating recommendation letters and Fishermen's Fuel purchases at SPBN or SPBU is the responsibility of DKP Provinsi Lampung and DKP Kota Bandar Lampung. Referring to BPH Regulation No. 02 of 2023 regarding the Issuance of Recommendation Letters for the Purchase of Subsidized Fuel, the recommendation letter is issued. One of the requirements for obtaining a recommendation letter is the availability of the Small E-Pas/Large E-Pas document. The letter of recommendation is given to fishing boats that have a capacity between 1 and 30 GT. This letter can be used in purchasing subsidized fuel at SPBN PT Pertamina, SPBN PT AKR, and SPBU that have a cooperation agreement.

PT PPN is divided into 8 regions, one of which is the Sumbagsel Region. PT PPN is tasked with serving the second party or partner or distributor, to take care of SPBN permits and distribute fuel from the depot to SPBN in accordance with existing provisions and quotas. This distribution can be according to the request from SPBN, but still refers to the quota set by BPH Migas. In accordance with BPH Migas Decree No. 64/KPTS/KA/BPH MIGAS/KOM/2023 concerning Guidelines for Supervision Results Guidance for Distributors in the Distribution of Subsidized Fuel, PT PPN is required to supervise and provide guidance to distributors. The supervision carried out is: routine supervision, supervision of follow-up coordination results, and supervision of facilities. PT PPN together with BPH Migas can impose sanctions on distributors who are proven to have violated their obligations.

BPH Migas is a government agency that exercises its powers, responsibilities, and functions independently. Reports must be sent to the President via the KESDM, and the BPH Migas is answerable to the President. When it comes to subsidized fuel oil, BPH Migas is responsible for regulating and overseeing its supply and distribution, allocating its volume, creating a fuel oil distribution system, and suggesting that business licenses be revoked. Law No. 22 of 2001, BPH Migas Regulation No. 02 of 2023, and BPH Migas Decree No. 64 of 2023 serve as the foundation for the responsibilities and powers of BPH Migas. Figure 1 shows the interactions between the various parties engaged in the distribution and supply of subsidized gasoline for fishermen in Kangkung Village.

Figure 1. Institutional scheme of fuel distribution subsidies for fishermen in Kangkung Village, Bandar Lampung City
Source: Processed Data, 2024
3.2 Policy Implementation Mapping

Policy Implementation Mapping aims to identify strategies during the application or implementation of policies based on the strength or influence of each stakeholder. The strategies implemented will directly and indirectly affect the progress of fishermen's businesses. Adaptively efficient institutions are a necessary condition for achieving successful economic change [17]. Mapping with the Ethical Analysis Grid indicates 2 categories of stakeholders, namely, stakeholders who support and stakeholders who oppose policy implementation [13]. The Ethical Analysis Grid describes the interests, resources, channels used, possible participation (Table 2) and the level of influence, implications and actions taken by stakeholders involved (Table 3). The analysis's findings demonstrate that everyone involved in Kangkung Village's fuel distribution program, from policymakers to policy receivers, supports the policies put in place during the implementation phase. The distribution of subsidized fuel for fisherman is not opposed by any stakeholders in this instance (Table 2 and Table 3).

Table 2. Interest, resource, channel, and possibility of participation of stakeholders

Stakeholder Categories

Interest

Resource

Channel

Possibility of Participation

Potential Support

1.BPH Migas

a. Determinant of implementation policy

b. Supervision of implementation

Human Resources, systems and technology, and policies issued

a. Law No. 22 of 2001

b. Presidential Decree No. 117 of 2021

c. BPH Migas Regulation No 02 of 2023

d. BBPH Migas Decree No. 64 of 2023

As a regulator of implementation and supervision of stakeholders involved (business entities, related agencies, and distributors)

2.PPT PPN

Business entities that handle Second Parties (SPBN and fuel SPBUs for the general public)

Human resources, systems and technology, authority granted, SPBN and fuel SPBUs for the general public

a. Law No. 22 of 2001

b. Presidential Decree No. 191 of 2019

c. BPH Migas Regulation No 02 of 2023

d. BPH Migas Decree No. 64 of 2023

As an implementing and supervising operator for Business Entity partners or distributors

3.DKP Kota Bandar Lampung

a. Issuer of recommendation letters

b. Supervision of the use of recommendation letters

Human resources, systems and technology, authority granted, SPBN and fuel SPBUs for the general public

a. Law No. 22 of 2001

b. Presidential Regulation No. 191 of 2019

c. BPH Migas Regulation No. 02 of 2023

Agencies that issue recommendations and interact directly with users (fishermen)

4.Kantor KSOP

Issuing E-pass small and large ship documents

Human resources, document issuance systems, and the authority granted

a. Law No. 11 of 2020

b. Minister of Transportation Regulation No. 16 of 2023

c. Government Regulation No. 16 of 2016

The authorized agency issuing ship documents as a requirement for a letter of recommendation

5.KUD Mina Jaya

Contract holder agreement with PT Pertamina

HR, Legal Entity Legality, and cooperation agreements

a. Law No. 17 of 2012

b.ESDM Regulation No. 13 of 2018

A legal entity that is bound by a cooperation agreement with PT Pertamina and receives a fee for selling fuel from SPBN PT Pertamina

6.SPBN PT Pertamina

Distributor of subsidized fuel for fishermen

Human Resources, infrastructure, systems and technology, authority granted, Service Operational Standards

a. Regulation of the KESDM No. 13 of 2018

b. Decree of BPH Migas No. 64 of 2023

c. Regulation of BPH Migas No. 02 of 2023

Bound by a cooperation contract with KUD Mina Jaya, receiving profits from sales of subsidized fuel, providing fees (profit sharing) to KUD Mina Jaya

7.SPBN PT AKR

Distributor of subsidized fuel for fishermen

Human Resources, infrastructure, systems and technology, authority granted, Service Operational Standards

a. Regulation of the KESDM No. 13 of 2018

b. Decree of BPH Migas No. 64 of 2023

c. Regulation of BPH Migas No. 02 of 2023

Private company, gets sales profit

8.Fishermen

Users/consumers

Ship and letter of recommendation

a. Government Regulation No. 16 of 2016

b. BPH Migas No. 02 of 2023

Direct users or consumers of fuel subsidies

Potential to Reject

No stakeholders objected

Source: Processed Data, 2024

In relation to policy implementation, stakeholders are divided into primary stakeholders and supporting stakeholders. Primary stakeholders are stakeholders who receive direct impacts from policy implementation, both positive and negative impacts, while supporting stakeholders are stakeholders who play a role in helping to implement the policy [10].

Table 2 and Table 3 show the results of identifying the level of stakeholder influence on the success of policy implementation based on their strength, the following categories were obtained: (1) Very strong: BPH Migas, (2) Strong: PT PPN, DKP Kota Bandar Lampung, and KSOP, (3) Moderate: SPBN PT Pertamina and SPBN PT AKR, (4) Low: KUD Mina Jaya and fishermen. BPH Migas plays a very strong role because it functions as a regulator at the Central Government level that regulates stakeholder actions at lower levels. The strong role of BPH Migas is stated in the regulations and decisions that are prepared and issued. These regulations must be obeyed and contain sanctions if violated. Government administration functions to issue various important policies to support the economy, including subsidy policies. This is because the public sector is part of the economy run by the state, namely the central government, local governments, and their organizations [18].

Table 3. Level of influence, implications, and stakeholder actions

Stakeholder Categories

Level of Influence

Implications

Action

Potential Support

1. BPH Migas

Very strong (using policy)

Authorized to control all distribution activities with published policies

- Iincrease transparency and accountability by conducting periodic audits and evaluations

- Cooperate with law enforcement to carry out supervision and law enforcement

2. PT PPN

Strong influence (with authority as operator)

Carrying out distribution activities with SOPs based on provisions and having full authority to supervise distribution partners

- Iimplementing transparency, audits, and accountability for accessibility of subsidized fuel purchases

- Encouraging the development of SPBN infrastructure for areas far from SPBN

- Conducting supervision of SPBN to avoid misuse

3. DKP Kota Bandar Lampung

Strong influence (as a policy implementer at the fishermen level)

Carrying out administrative activities

- Improve coordination between related parties (KKP, BPH Migas, PT PPN, and KSOP)

- Evaluation and supervision of the use of recommendation letters by SPBN and fishermen

- Provide education for fishermen

4. Kantor KSOP

Strong influence (as the implementer of ship document making policies)

Carrying out administrative activities

Recruiting and opening up opportunities for professional development of civil servants to become ship surveyors according to needs in the field

5. KUD Mina Jaya

Low (almost no effect)

Sign a cooperation agreement contract

Develop a mutually beneficial partnership system with PT Pertamina and SPBN

6. SPBN PT Pertamina

Medium influence (responsible for distribution)

Providing services to fishermen

- Implement transparency and accountability with government agencies and PT PPN

- Serve fishermen's fuel needs according to procedures

7. SPBN PT AKR

Medium influence (responsible for distribution)

Providing services to fishermen

- Implement transparency and accountability with government agencies and PT PPN

- Serve fishermen's fuel needs according to procedures

8. Fishermens

Low (as end consumer)

Completing the requirements for purchasing subsidized fuel

Complete documents and permits according to the provisions set out

Potential to Reject

No stakeholders objected

Source: Processed Data, 2024

The government has a big role in institutions. Government's capacity to act is based on three “pillars” of institutionalization identified by the study [19]: regulatory, normative, and cognitive. From the perspective of the regulatory pillar, the government has the capacity to determine the rules of the game by making laws and other regulations [20]. However, in the normative pillar, the government has the ability to provide socio-political legitimacy, which is an assessment of conformity with applicable standards and principles. In the cognitive pillar, the role of government can also have an impact on the classification scheme used to understand and regulate the social world. This opinion explains that the position of BPH Migas as a government institution has a very large influence on the success of policy implementation. The position of BPH Migas is in contrast to KUD Mina Jaya and fishermen who have the weakest position. These two stakeholders do not have power and can only carry out the will of the regulations that have been set. Individuals can consciously decide to adopt different rules and change their behavior to comply with the decision [21].

3.3 Stakeholders Based on Influence and Interest (Power Versus Interest Grid)

A stakeholder's influence and interests can be used to categorize those participating in the distribution of subsidized fuel for fishermen: important actors, context setters, subjects, and crowds. When associated with the context of public policy, stakeholders are parties who are affected and/or influence a public policy [11]. Figure 2 displays the stakeholder mapping for the distribution of subsidized fuel for fishermen.

In sector A (Crowd), the distribution of subsidized fuel for fishermen is weakened by stakeholders who lack interest, influence, or power. In this industry, no stakeholders were found, though. Stakeholders included in sector B (Context Setter) are the DKP Kota Bandar Lampung and the KSOP. Despite having no interests, these parties have an impact on how fishermen receive subsidized fuel. The role of these stakeholders is absolutely necessary as implementers who support the series of regulatory mechanisms set by BPH Migas. The recommendations made in this sector are:

1. Carrying out socialization and education regarding rules, laws, or changes to provisions pertaining to the distribution of fuel subsidies for fishermen.

2. Actively involving agencies to provide more support for the subsidized fuel program through the support of human resources, coordination, data, and infrastructure if possible.

3. Providing roles as well as limitations of authority within the scope of their duties and ensuring that these stakeholders comply with the regulations that have been set.

4. Conducting regular coordination to evaluate the implementation of mechanisms and prevent abuse of authority.

Figure 2. Grouping of stakeholders based on influence and interests
Source: Processed Data, 2024

Stakeholders in sector C (Subject) are fishermen and KUD Mina Jaya. These stakeholders are very interested but do not have a strong influence. Fishermen are the main object as consumers/users who are required to follow the applicable regulations in accessing/purchasing subsidized fuel. KUD Mina Jaya is interested in prioritizing the interests of cooperative members to be able to access subsidized fuel. In its position as a legal entity that signs a cooperation agreement, KUD Mina Jaya only coordinates with PT Pertamina when the agreement period is about to expire and must be renewed. KUD Mina Jaya does not have the authority and involvement in the operational distribution of subsidized fuel in Bandar Lampung City. Individual abilities are positively or negatively influenced by the actions or inactions of various social institutions related to market operations, administration, legislative bodies, political parties, non-governmental organizations, judicial institutions, and judicial institutions, the media and society in general [22]. This opinion explains the position of fishermen and KUD Mina Jaya as weak stakeholders. Policy formulation by adding the perspective of fishermen can be a consideration so that the policies taken can adopt fishing business activities [23]. The recommendations made to these stakeholders are:

1. Describe the most recent and pertinent changes pertaining to the provision of fuel subsidies for fishermen.

2. Socialization and education provide opportunities to provide feedback in the form of suggestions and opinions in order to build good communication.

3. Provide subsidized fuel purchasing services in accordance with applicable mechanisms.

4. Facilitate stakeholders to coordinate with related agencies if problems occur in the field.

Stakeholders identified in sector D (Player) are BPH Migas, PT PPN, SPBN PT AKR, and SPBN PT Pertamina. Fuel distribution and provision, both subsidized and non-subsidized, are the responsibilities of BPH Migas, an independent government agency that reports to the president via KESDM. In addition to controlling its system, BPH Migas has the power to impose rules pertaining to the distribution of subsidized fuel. Lawmakers have the authority to determine, change, and establish formal rules that contain policy factors. Lawmakers can issue new regulations to change the game or respond to game requirements [24]. PT PPN is a business entity officially appointed to carry out distribution, while SPBN PT AKR, and SPBN PT Pertamina are distributors who are directly responsible in the field. Business entities and distributors focus more on Commercial and Trading (CNT), which aims to gain profit from the business being conducted. Recommendations that can be given to these stakeholders are:

1. Collaborate to build strategic and mutually beneficial partnerships with cooperation agreements that contain the roles and responsibilities of each, and ensure that each interest is accommodated.

2. Provide resource and technical support to help carry out each role and responsibility.

3. Build active, open, and transparent communication between stakeholders to maintain trust and achieve common goals.

4. Apply the concept of reward and punishment as an appreciation for work performance and, on the other hand, as a punishment for being inconsistent or violating the agreement.

5. Conduct monitoring, evaluation, and supervision to ensure that the entire system runs according to applicable regulations and there are no deviations.

3.4 Distribution of Fuel Subsidies for Fishermen's Strategy

Fishermen's incapacity to handle administrative procedures is the primary problem with Kangkung Village's subsidized fuel distribution. Especially for fishermen who use Pertalite, the difficulty faced is the absence of SPBU that serve the needs of fishermen, so fishermen can only buy at these SPBU using motorized vehicles or buy retail. The fact that small fishermen with boat sizes ≥ 5 GT get more diesel fuel above the normal price because of the distance from the fish landing site to SPBU such as SPBN, or SPBUs that can serve fishermen who are far away [25]. The central government often considers policy objectives to be easy to understand (low ambiguity) [26]. The administrative model strategy used by the government is top-bottom policy implementation and command and control implementation. Furthermore, because the SPBN was not strategically located to allow fishermen who were far away to use it, This strategy was less effective in supporting fishermen's enterprises and that fishermen had trouble receiving discounted fuel. Fishermen are also burdened by the system for allocating subsidized fuel that involves processing their business permits. A plan is required in order to solve this issue and distribute discounted fuel in a proper manner [9].

Strategy is an approach designed to achieve certain goals by using available resources effectively and efficiently. Furthermore, strategy as divided into 5 definitions, namely strategy as a plan, pattern, position, tactic (ploy), and strategy as a perspective [27]. The preparation of a strategy for distributing subsidized fuel for fishermen in Bandar Lampung uses SWOT Analysis based on internal and external factors. DKP Kota Bandar Lampung is the organization that was examined in order to develop a plan for providing fishermen in Kangkung Village with subsidized fuel. The Bandar Lampung City DKP is the agency issuing the recommendation letter for purchasing subsidized fuel, as explained in BPH Migas Regulation No. 2 of 2023. The Bandar Lampung City DKP plays a strategic role in ensuring the use of the recommendation letter to be on target and in volume. What is meant by on target is that the recommendation letter is used by entitled fishermen, while the right volume is that the amount of fuel purchased is not more or less than the quota that has been set. In addition, the Bandar Lampung City DKP is an extension of the Bandar Lampung City Government, which is tasked with empowering fishermen in Kangkung Village. In order to be able to carry out its duties and authorities properly, it is necessary to formulate a strategy according to the strengths and weaknesses it has, as well as the opportunities and obstacles encountered.

In determining the SWOT (grand strategy) position map, it is necessary to compile an EFAS matrix by weighting and rating external factors (Opportunities and Threats) and IFAS by weighting and rating the factors. Table 4 and Table 5 show the EFAS and IFAS matrices used to create a plan for providing fishermen in Kangkung Village with subsidized fuel.

Based on the results of the EFAS and IFAS mapping, the X-axis point is obtained at 0.25, and the Y-axis point is obtained at 0.49. The coordinate points obtained are (0.25, 0.49) as shown in Figure 3. The figure shows the coordinate points located in quadrant I. Quadrant I is a quadrant bounded by the X and Y axes, both of which are positive. The recommended alternative strategy is an aggressive strategy.

Aggressive strategy is a strategic approach that utilizes strengths to seize available opportunities. The strength factors that are owned can be seen in Table 4, and the opportunity factors are presented in Table 5. The strength of the DKP Kota Bandar Lampung with the highest value (0.500) as an agency that can issue recommendation letters is the main strength. This recommendation letter cannot be replaced and must be present as a fuel purchase document. This becomes even more important with the collaboration with KSOP to issue the ship E-Pass which is a requirement for making a recommendation letter with the same strength value as the recommendation letter (0.500). The big challenge is that the number of ship measurement experts at KSOP is only 2 people to serve the Bandar Lampung City area. This is a problem that needs to be followed up firmly at the central government level by involving related agencies. This limited personnel is an obstacle to the issuance of ship E-Pass because KSOP cannot measure ships effectively and efficiently according to the needs of fishermen. PP No. 27 of 2021 provides an opportunity for the KKP to handle measurements of special fishing vessels.

Several external factors that are opportunities towards ideal conditions are the demand for subsidized fuel by fishermen and the availability of 2 SPBN units in Bandar Lampung City. The location of these 2 SPBN units is only in one location. This is a slight obstacle, especially for fishing boats whose anchorage is not around the SPBN. Another problem is the difficulty of obtaining Pertalite fuel for fishing boats, because SPBN only provides diesel fuel. Although there are not many ships using Pertalite, the needs of these fishing boats need to be accommodated, because they are generally small ships (1-3 GT). The steps that need to be taken to address this problem are to build cooperation and partnerships with PT PPN to open access to subsidized fuel services for fishermen at SPBU.

Figure 3. Strategy quadrant graph in SWOT analysis

The DKP Kota Bandar Lampung has a lot of strength and can take advantage of current chances to support the targeted distribution of subsidized fuel, as seen by the quadrant graph in Figure 3. However, in order to overcome the challenges faced in the distribution of subsidized fuel, DKP Kota Bandar Lampung must perform better. To improve the economy of small fishermen, government assistance is needed through coaching and developing the abilities of fishermen in various aspects. Subsidized fuel is government assistance in providing relief from the operational burden of fishing businesses [28].

The aggressive strategies that can be carried out by the DKP Kota Bandar Lampung are as follows:

1. Use of recommendation letters for purchasing subsidized fuel appropriately at SPBN and SPBU in organizing the distribution of fuel for fishermen in Kangkung Village.

2. Increase the effectiveness of the Xstar application in digital-based fuel distribution services.

3. Build cooperation and partnership with PT PPN to open access to subsidized fuel services for fishermen at SPBU.

4. Coordinate with the Bandar Lampung City Government and agencies involved to facilitate the administrative needs of fishermen in the form of ship documents, recommendation letters for purchasing subsidized fuel, and fishing business permits in the one-stop service concept.

5. Alignment and coordination with various government elements, fisheries cooperatives, and fishing communities to improve the administrative order of subsidized fuel requirement documents and fishing business permits.

6. Maximize the utilization of available facilities and infrastructure to improve subsidized fuel services.

7. Encourage the realization of the implementation of fishing vessel measurements by regional fisheries officers (provinces and districts) in Bandar Lampung as implementers of the KKP.

To test whether a strategy is good or not, an evaluation of the implementation results needs to be carried out. Identification of benchmarks for implementing strategies that can be used, namely consistency, suitability, excellence, feasibility and not causing unsolvable problems [29]. DKP Kota Bandar Lampung can carry out this evaluation periodically at a predetermined time and incidentally when a problem occurs. The evaluation results can be used to maintain, renew, or further strengthen existing strategies.

Table 4. IFAS matrix

Internal Strategy Factors

Weight

Rating (1 to 4)

Weight × Rating

Explanation

I. Strength (S)

1. DKP Kota Bandar Lampung has the authority to issue Recommendation Letters and ensure their use is on target and in volume.

0.125

4.0

0.500

Recommendation Letter as a mandatory document in purchasing subsidized fuel at SPBN

2. Bandar Lampung City Government has an account for the Xstar Application which is operated by the DKP Kota Bandar Lampung.

0.063

3

0.188

This application is for issuing recommendation letters online, however, it can be replaced by manual recommendation letters

3. DKP Kota Bandar Lampung has a port UPTD with mooring facilities.

0.031

2

0.063

The port serves as a mooring facility for fishing boats and also as a fuel SPBU

4. DKP Kota Bandar Lampung is working together with the KSOP to facilitate the creation of small E-Pas.

0.125

4

0.500

E-Pas as a document required to obtain a letter of recommendation

5. DKP Kota Bandar Lampung has a fostered institution in the form of a cooperative.

0.094

3

0.281

The cooperative's members are fisheries business actors and has an MoU for the management of SPBN PT Pertamina in Lempasing

6. DKP Kota Bandar Lampung has fishermen under its guidance, both in groups and individually.

0.094

3

0.281

73 fishermen groups 34 of them (45.58%) are in Kangkung Village

Total Strength

(Amount 1 - 6)

1.813

II. Weakness (W)

1. Human resources/officers handling the Capture Fisheries sector are very limited and have a lack of understanding of subsidized fuel for fishermen.

0.125

4

0.500

There are only 8 personnel to handle the capture fisheries sector, and only 1 personnel understand the mechanism of fishermen's fuel

2. Direct socialization of regulations/policies to fishermen regarding the distribution mechanism for subsidized fuel has not been carried out.

0.094

2

0.188

Lack of socialization causes fishermen to receive incomplete information

3. There has been no cooperation with SPBU through PPN facilitation to serve fishermen.

0.125

2

0.500

Subsidized fuel for fishermen can be accessed through SPBUs

4. Supervision of the appropriate use of recommendation letters is very weak.

0.125

3

0.375

Limited letter usage monitoring system

Total Weakness

(Amount 1 - 4)

1.563

Strength - Weakness

(X Axis)

1.00

0.25

Source: Processed Data, 2024
Table 5. EFAS matrix

External Strategy Factors

Weight

Rating (1 to 4)

Weight × Rating

Explanation

I. Opportunity (O)

1. There is a demand for subsidized fuel by fishermen

0.098

4

0.390

Fuel is the main component for ship operations

2. There are already SPBN PT AKR and SPBN PT Pertamina

0.098

4

0.390

Facilities specifically for fishermen

3. There is a PT PPN commitment to facilitate cooperation between the DKP Kota Bandar Lampung and SPBUs to access subsidized fuel purchases for fishermen

0.098

4

0.039

Cooperation with SPBU must be supported by PT Pertamina as the implementing business entity

4. There is a need for fishermen to complete the documents required for access to subsidized fuel and their businesses

0.098

4

0.039

Administrative documents are the main requirement for accessing subsidized fuel

5. The existence of KUD Mina Jaya as a fisheries cooperative

0.073

3

0.220

The parties who signed the MoU with PT Pertamina

6. Government Regulation No. 27 of 2021 grants the authority to measure fishing vessels to KKP

0.098

4

0.390

Supported by Minister of Transportation Regulation No. 45 of 2021 concerning Ship Measurement

Total Opportunity

(Amount 1 - 6)

2.171

II. Threat (T)

1. For fisherman, the requirements to obtain discounted fuel are onerous

0.098

4

0.390

The main problems experienced by fishermen

2. Access limitations resulting from each SPBU's unique policies make it difficult to obtain subsidized fuel at fuel SPBUs

0.098

4

0.390

Becoming an obstacle in accessing fuel at fuel SPBUs

3. There are indications of illegal levies occurring in the process of accessing subsidized fuel

0.073

4

0.293

Extortion practices burden fishermen

4. Human resources for ship surveyors at KSOP are limited

0.098

4

0.390

Ship measurements are a mandatory process to obtain a ship's pass/letter

5. Weak monitoring and supervision at the subsidized fuel distributor/SPBN level

0.073

3

0.220

It is not a inhibiting factor as long as the quota is available

Total Threat

(Amount 1 - 5)

1.683

Opportunity - Threat (Y Axis)

1.00

0.490

Source: Processed Data, 2024

4. Conclusion

All stakeholders support the enforcement of the policies and have no objections to the provision of fuel subsidies to fishermen in Bandar Lampung City. The Policy Implementation Mapping Analysis shows the level of strength towards the success of the implementation of the policy in 4 stakeholder categories, namely: (1) Very Strong Category: BPH Migas, (2) Strong Category: PT PPN, DKP Kota Bandar Lampung, and KSOP, (3) Medium Category: SPBN PT Pertamina and SPBN PT AKR, and (4) Low Category: KUD Mina Jaya and fishermen.

Based on the Power vs Interest Grid analysis, stakeholders in the distribution of fishermen's fuel subsidies were identified as being located in 3 sectors, namely: (1) Sector B (Context Setter): DKP Kota Bandar Lampung and KSOP; (2) Sector C (Subject): fishermen and KUD Mina Jaya; and (3) Sector D (Player): BPH Migas, PT PPN, SPBN PT AKR, and SPBN PT Pertamina.

The strategy that needs to be carried out by the DKP Kota Bandar Lampung to distribute subsidized fuel to fishermen appropriately is an aggressive strategy. The most urgent strategies to be carried out are: (1) Increasing the effectiveness of the Xstar application in digital-based fuel distribution services; (2) Building cooperation and partnerships with PT PPN to open access to subsidized fuel services for fishermen at SPBU; (3) Coordinating with the Bandar Lampung City Government and agencies involved to facilitate the administrative needs of fishermen and fishing business permits in the one-stop service concept; and (4) Encouraging the realization of the implementation of fishing vessel measurements by regional fisheries officers (province and district) in Bandar Lampung as implementers of the KKP.

One of the obstacles in implementing the subsidized fuel policy for fishermen is the limited number of expert ship surveyors at KSOP. The Bandar Lampung City Marine and Fisheries Service needs to coordinate with the Ministry of Marine Affairs and Fisheries to encourage the implementation of PP No. 27 of 2021. This regulation provides the opportunity to hand over the task of measuring fishing vessels to the KKP.

Data Availability

The data used to support the research findings are available from the corresponding author upon request.

Conflicts of Interest

The authors declare no conflict of interest.

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Cite this:
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Sitanggang, R. L., Febryano, I. G., Damai, A. A., Kaskoyo, H., & Riantini, M. (2025). Stakeholder Dynamics in the Distribution of Subsidized Fuel for Fishermen in Bandar Lampung City, Indonesia: Challenges and Strategic Implications. J. Sustain. Energy, 4(1), 18-33. https://doi.org/10.56578/jse040102
R. L. Sitanggang, I. G. Febryano, A. A. Damai, H. Kaskoyo, and M. Riantini, "Stakeholder Dynamics in the Distribution of Subsidized Fuel for Fishermen in Bandar Lampung City, Indonesia: Challenges and Strategic Implications," J. Sustain. Energy, vol. 4, no. 1, pp. 18-33, 2025. https://doi.org/10.56578/jse040102
@research-article{Sitanggang2025StakeholderDI,
title={Stakeholder Dynamics in the Distribution of Subsidized Fuel for Fishermen in Bandar Lampung City, Indonesia: Challenges and Strategic Implications},
author={Rostuti Lusiwati Sitanggang and Indra Gumay Febryano and Abdullah Aman Damai and Hari Kaskoyo and Maya Riantini},
journal={Journal of Sustainability for Energy},
year={2025},
page={18-33},
doi={https://doi.org/10.56578/jse040102}
}
Rostuti Lusiwati Sitanggang, et al. "Stakeholder Dynamics in the Distribution of Subsidized Fuel for Fishermen in Bandar Lampung City, Indonesia: Challenges and Strategic Implications." Journal of Sustainability for Energy, v 4, pp 18-33. doi: https://doi.org/10.56578/jse040102
Rostuti Lusiwati Sitanggang, Indra Gumay Febryano, Abdullah Aman Damai, Hari Kaskoyo and Maya Riantini. "Stakeholder Dynamics in the Distribution of Subsidized Fuel for Fishermen in Bandar Lampung City, Indonesia: Challenges and Strategic Implications." Journal of Sustainability for Energy, 4, (2025): 18-33. doi: https://doi.org/10.56578/jse040102
SITANGGANG R L, FEBRYANO I G, DAMAI A A, et al. Stakeholder Dynamics in the Distribution of Subsidized Fuel for Fishermen in Bandar Lampung City, Indonesia: Challenges and Strategic Implications[J]. Journal of Sustainability for Energy, 2025, 4(1): 18-33. https://doi.org/10.56578/jse040102
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