Government to Restrict Pertalite Subsidised Fuel Users, Here's Why

The government plans to restrict the distribution of subsidised Pertalite fuel to upper-income groups. This move aims to tidy up the governance of subsidised fuel distribution so that the subsidy allocation is no longer enjoyed by ineligible consumers.

Energy and Mineral Resources Minister Bahlil Lahadalia stressed the need to improve the distribution pattern of subsidised fuel. The government wants to ensure that the energy subsidy budget is genuinely received by vulnerable community groups.

“We also discussed the pattern of targeted subsidies. As we know, some subsidies are not on target. The wealthy should not be subsidised by us, for example Pertalite. Decile 9 and decile 10 still receive subsidies,” he said when met at the Ministry of Finance office in Jakarta, quoted on Wednesday (12/8/2026).

The main reason behind the restriction plan is the large value of subsidies that burden the state, yet in practice, upper-income groups still consume subsidised fuel. Bahlil reminded owners of luxury vehicles to switch to non-subsidised fuel in line with their economic capacity.

“Regarding the restrictions, for example, certain types of vehicles, don’t use a BMW or Mercedes and still use subsidised fuel. That is what the minister meant,” Bahlil added.

Meanwhile, the Ministry of Finance emphasised that the plan to restrict Pertalite purchases is to maintain the resilience of the state budget until the end of 2026.

Finance Minister Purbaya Yudhi Sadewa said his ministry is studying the readiness of a digital monitoring system to filter consumer data for those eligible for the fuel subsidy.

“So we discussed the possible implementation of Pertalite subsidy restrictions for the upper levels, perhaps decile 9 and 10, so that in a few months we can gradually reduce it. We are studying the system; I have also seen Pertamina’s system, and it is quite good and ready to be implemented,” Purbaya explained at the same occasion.

Purbaya mentioned that the restriction scheme will be carried out carefully and gradually in line with the results of field system testing. Through this mechanism, the highest income groups will eventually be directed to use non-subsidised fuel products.

“We are testing the system; Pertamina has tested the system, and I have seen it. Those in decile 9 and 10 may not be able to buy subsidised fuel. They must pay for Pertamax or others. Something like that,” he concluded.