Indonesian Political, Business & Finance News

Finance and Energy Ministers Forge Plan to Restrict Pertalite for Targeted Subsidies

| Source: CNBC Translated from Indonesian | Economy
Finance and Energy Ministers Forge Plan to Restrict Pertalite for Targeted Subsidies
Image: CNBC

Finance Minister Purbaya Yudhi Sadewa and Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia have begun formulating a scheme to restrict subsidised fuel oil (BBM), particularly Pertalite. This is being done to ensure that energy subsidies are truly received by those who are entitled to them.

In a meeting at the Ministry of Finance on Tuesday (11/8/2026), the two discussed the possibility of limiting access to subsidised Pertalite for groups with high economic capacity. One group of concern is people in the decile 9 and 10 categories.

In economic terms, decile 9 represents the upper-middle class and decile 10 is the upper class. However, the restriction is still in the study phase.

“So earlier we discussed the possibility of implementing restrictions on Pertalite subsidies for the upper levels, perhaps deciles 9 and 10, so that in a few months we can reduce them gradually,” said Purbaya when met at the Ministry of Finance, as quoted on Wednesday (12/8/2026).

According to Purbaya, the government is still studying the system that will be used to determine who is entitled to receive Pertalite subsidies. On the other hand, he has seen the system owned by PT Pertamina (Persero) to support the implementation of targeted subsidies.

“We are studying the system, and I have also had the chance to see that Pertamina’s system is quite good, so it is ready to be implemented,” he said.

Although the government has begun preparing the restriction system, Purbaya stressed that no decision has been made regarding the timing of the policy’s implementation.

At the same occasion, Bahlil said that the discussion on targeted subsidies is part of close coordination between the Ministry of ESDM and the Ministry of Finance. He acknowledged that so far Pertalite can still be enjoyed by people from the upper economic groups.

“So this is what we are starting to discuss, the system and everything, so that what? The subsidy figure of hundreds of trillions is truly given to our brothers and sisters who are entitled to receive it. And this is in line with what the President has directed. That is why we are holding coordination meetings, ministerial meetings, like that,” he said.

On the other hand, he confirmed that there is no restriction on the purchase of subsidised fuel for two-wheeled vehicles at petrol stations. According to Bahlil, motorcycles are still allowed to buy Pertalite fuel as usual without any special restrictions or new prohibitions.

“No, motorcycles are not restricted. That means there is no change for motorcycles. Be careful, don’t make that a headline, be careful, thank you,” said Bahlil.

Bahlil explained that the restriction the government is referring to relates to types of vehicles that are deemed not appropriate to use subsidised fuel. According to him, luxury vehicles such as BMW and Mercedes-Benz are examples of vehicles that should not use Pertalite.

“So it’s like this, later regarding the restriction, there will be types of vehicles, right, don’t use a BMW or a Mercy and then use subsidised fuel. That is what the Minister meant earlier,” he said.

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