The Blue Fiscal Transition

Transforming the State Budget: From “Burning” Subsidies to Building Sovereign Assets.

The Status Quo is a Fiscal Black Hole. Every year, the State Budget (APBN) allocates trillions of Rupiah to fuel subsidies. For the maritime sector, this expenditure is a “sunk cost.” It is money burned in the combustion chambers of inefficient two-stroke engines, leaving behind nothing but pollution and a continued dependency on volatile global oil markets.

At Gempacs, we propose a strategic pivot. We do not ask for more money. We propose a smarter way to use the money you are already spending.

The Policy Proposal: The “Fiscal Swap”

The current model subsidizes Operating Expenditure (OpEx): You pay for the fuel that fishers burn every day. The Gempacs model subsidizes Capital Expenditure (CapEx): You guarantee the loans that allow fishers to buy their own power plants.

By reallocating a fraction of the fuel subsidy budget into a Sovereign Loan Guarantee Fund, the government can de-risk commercial loans for the electrification of the artisanal Jukung fleet.

How It Works:

1. Redirect: Instead of subsidizing liters of petrol, the State provides a credit guarantee (via Jamkrindo/Askrindo) for fishers’ loans.
2. Invest: Fishers use these guaranteed loans to acquire the Gempacs Solar-Electric ecosystem.
3. Recover: Because solar energy is free, the fisher swaps their daily fuel bill for a loan repayment that is lower than their previous fuel costs.
4. Result: The fisher doubles their income, and the State stops paying the subsidy for that vessel—forever.

Why This Wins: The 4 Pillars of National Interest

1. Fiscal Security & Leverage

A fuel subsidy is 1:1 spending—one Rupiah in, one Rupiah burned. A Loan Guarantee is 1:10 leverage. Every Rupiah placed in a guarantee fund can unlock ten Rupiahs of private banking capital for national development. You reduce the APBN deficit while stimulating the banking sector.

2. Poverty Alleviation (The “Pak Eko” Effect)

Poverty in coastal communities is structural, driven by the high cost of fishing. Our pilot data shows that electric propulsion increases a fisher’s take-home pay by over 50% immediately. This is not a handout; it is a technology-driven wage increase that requires no government cash transfer.

3. Energy Sovereignty

Indonesia is blessed with the highest solar irradiance on the planet , yet our fishers rely on imported oil. Electrifying the Jukung fleet means powering our maritime economy with domestic sunshine rather than foreign fossil fuels. It aligns perfectly with the Net Zero 2060 pledge and the National Energy Policy (KEN) targets.

4. Industrial Revitalization (TKDN)

The Gempacs model is built for the Indonesian context. A national program to retrofit 500,000 vessels will create a massive domestic demand for batteries, solar panels, and boatyard labor. This turns a welfare problem into an industrial engine, driving the Blue Economy and creating green jobs in every coastal village.

The Gempacs Advantage

We are not just selling motors; we are providing the Digital Infrastructure to make this policy enforceable.

- IoT & Accountability: Our systems track every nautical mile. You will know exactly where the assets are and how much carbon is being saved.
- The Cooperative Model: We work through Koperasi, aggregating fragmented artisanal fishers into bankable entities, ensuring that government guarantees are managed professionally.

The technology is ready. The economics are proven. All that is missing is the political will to flip the switch.