Indonesian Political, Business & Finance News

Government to Restrict Pertalite Fuel Use for Upper-Income Groups

| Source: CNBC Translated from Indonesian | Economy
Government to Restrict Pertalite Fuel Use for Upper-Income Groups
Image: CNBC

The Indonesian government, through Finance Minister Purbaya Yudhi Sadewa and Minister of Energy and Mineral Resources (ESDM), plans to restrict the use of subsidised fuel, specifically Pertalite petrol, for certain groups — namely deciles 9 and 10. The restriction is part of the government’s effort to deliver subsidies on target.

Purbaya explained that the restriction on Pertalite fuel subsidies for decile 9 and 10 groups is likely to be implemented. “Earlier we discussed the possibility of implementing restrictions on Pertalite subsidies for the upper levels, perhaps deciles 9 and 10, so that a few months later we can reduce them gradually,” Purbaya said when met at the Ministry of Finance office on Tuesday (11/8/2026).

In economic terms, decile 9 represents the upper-middle class group and decile 10 is the upper class group. “We are currently studying the system. I have also had a chance to look at Pertamina’s system, which is already quite good, so it is ready to be implemented,” Purbaya added.

Unfortunately, Purbaya has not yet explained when the restriction on Pertalite fuel use for certain deciles will be implemented. What is clear is that the government is preparing the system.

Minister of Energy and Mineral Resources Bahlil Lahadalia added that the plan to restrict Pertalite fuel use for certain deciles is the government’s effort to distribute subsidised fuel on target.

“As we all know, some subsidies have not been on target. Why should we subsidise the rich, for example with Pertalite? Decile 9 and decile 10 still receive subsidies. This is what we are starting to discuss — the system and everything — so that the hundreds of trillions of rupiah in subsidies are truly given to our brothers and sisters who are entitled to receive them,”

“And this is in line with what the President has directed. That is why we are holding coordination meetings between ministers,” Bahlil said at the same location on Tuesday (11/8/2026).

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