Indonesian Political, Business & Finance News

Government to Limit Subsidised Pertalite Fuel Consumption

| Source: CNBC Translated from Indonesian | Economy
Government to Limit Subsidised Pertalite Fuel Consumption
Image: CNBC

The government is studying a plan to limit the purchase of subsidised Pertalite fuel for upper-income groups, according to Minister of Finance Purbaya Yudhi Sadewa. Following a meeting with Minister of Energy and Mineral Resources Bahlil Lahadalia, Purbaya stated that the government is examining the implementation of restrictions, particularly for people in the ninth and tenth economic deciles. “We are discussing 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. We are studying the system, and I have seen that Pertamina’s system is quite good and ready to be implemented,” Purbaya said at the Ministry of Finance on Tuesday. He could not yet confirm when the policy would take effect, noting that the system and mechanisms are still being prepared. Bahlil Lahadalia added that the policy is necessary because wealthy individuals are still benefiting from subsidised fuel. He clarified that the restrictions will not apply to motorcycles, which will continue to purchase Pertalite as usual. Instead, the limitations will target certain types of vehicles deemed inappropriate for using subsidised fuel, such as luxury cars like BMWs and Mercedes-Benzes.

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