Indonesian Political, Business & Finance News

Deputy Finance Minister Discusses Plans to Restrict Pertalite Usage

| Source: CNBC Translated from Indonesian | Economy
Deputy Finance Minister Discusses Plans to Restrict Pertalite Usage
Image: CNBC

Deputy Finance Minister Juda Agung has revealed that the government is currently preparing a targeted policy for the distribution of subsidised fuel, specifically Pertalite (RON 90).

Speaking to the media in Bogor on Thursday (1/10/2026), Juda stated that these preparations are ongoing. Restricting the consumption of subsidised fuel is one of the government’s options to mitigate the economic risks posed by rising global crude oil prices and to protect public purchasing power.

Juda noted that rising crude oil prices have a significant impact on the national fiscal position, particularly regarding pressure on the state budget (APBN) deficit. “An increase of US$1 in the ICP (Indonesian Crude Price) results in a 6.8 trillion Rupiah impact on our deficit,” Juda explained.

Consequently, he emphasised the need for broad control over subsidised energy consumption, including not only fuel but also subsidised electricity and gas. He noted that current distributions are not yet fully targeted and that improvements are being made to ensure subsidies reach the correct recipients, thereby reducing the impact of oil prices on the deficit.

The pressure from global oil prices on the fiscal budget is evident in the surge of government subsidy and compensation realisation, which reached Rp331.4 trillion as of 31 August 2026. This figure represents a 52.1 per cent increase compared to the same period the previous year, with subsidy realisation at Rp177.1 trillion and compensation at Rp154.1 trillion.

Previously, under the leadership of Finance Minister Purbaya Yudhi Sadewa, discussions emerged regarding the tightening of subsidised fuel distribution. The government plans to limit Pertalite purchases for higher-income groups, initially targeting the top 10 per cent (decile 10) of the population.

Purbaya stated that the policy would not be applied to all high-income groups (deciles 9-10) immediately, but would be implemented gradually, starting with decile 10. He indicated that the implementation is targeted for the coming months, with previous suggestions suggesting it could occur before the year’s end.

On the other hand, the Minister of Energy and Mineral Resources, Bahlil Lahadalia, has urged that Pertalite consumption be prioritised for lower-income communities, noting a trend of users switching from non-subsidised fuels like Pertamax (RON 92) to subsidised options. “I urge our fellow citizens who are capable—those with nice cars—to use their conscience. We should not take the subsidy rights intended for those who are entitled,” Bahlil told reporters.

Separately, the Head of the Downstream Oil and Gas Regulatory Agency (BPH Migas), Wahyudi Anas, revealed that the distribution of Special Assignment Fuel (JBKP), or Pertalite, showed an increasing trend as of 30 June 2026. Pertalite distribution reached 13.96 million kilolitres, equivalent to 47.68 per cent of the total APBN quota of 29.27 million kilolitres.

This increase in consumption was triggered by price adjustments in other general fuel types, such as Pertamax and the Dex Series, which has led to a heavier burden on the distribution of subsidised fuel in recent times.

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