Bahlil Meets Purbaya to Discuss Ending Fuel Subsidies for the Wealthy

Energy and Mineral Resources Minister Bahlil Lahadalia met Finance Minister Purbaya Yudhi Sadewa to discuss the distribution of fuel subsidies so that they are better targeted.

According to him, part of the energy subsidies, particularly for fuel, are still enjoyed by the wealthy.

“We discussed the pattern of fuel subsidies so that they are properly targeted,” Bahlil said in Jakarta on Tuesday, 11 August 2026, after meeting Finance Minister Purbaya.

He said that oil and gas subsidies have not been fully targeted, and even people who are well-off receive subsidised fuel.

For this reason, Bahlil met Purbaya to find a system for distributing oil and gas subsidies so that they are properly targeted, given that hundreds of trillions of rupiah have been allocated for subsidies.

“We know that some subsidies are not properly targeted. Why should we subsidise the rich? For example, those in deciles 9 and 10 still receive subsidies. This is what we are discussing, the system and everything, so that the subsidy figure of hundreds of trillions of rupiah is truly given to our brothers and sisters who are entitled,” he said.

Bahlil said that better-targeted subsidy distribution is also in line with the president’s directive, and for that reason his ministry is communicating the directive by meeting the finance minister.

When asked about the amount of savings if oil and gas subsidies were properly targeted, Bahlil could not yet provide details because everything is still being calculated.

“This is in line with what the President has directed, and that is why we held a coordination meeting with the Minister. We want all subsidies in the oil and gas sector to be properly targeted,” he added.