Government to Restrict Subsidised Fuel for Decile 10 Group from 2026

Finance Minister Purbaya Yudhi Sadewa has stated that the government is preparing strategic measures to restrict the distribution of subsidised fuel. The policy is focused on making subsidies more targeted, with one of the main options being to limit access for people in the Decile 10 group.

Purbaya explained that the restriction plan is still in the technical preparation stage. The government plans to trial the policy in the near future to assess its effectiveness on the ground.

“We will try it in the coming months, for Decile 10, we will restrict it first,” Purbaya said when met at the Parliament Complex in Senayan, Jakarta, on Thursday (20/8).

In the economic welfare grouping system, the population is divided into 10 groups (deciles) of equal size. Decile 1 is the group with the lowest level of welfare, while Decile 10 is the group with the highest economic welfare, or the wealthiest group.

The Finance Minister stressed that this measure is not an attempt to tighten distribution indiscriminately, but rather a form of distribution reform. The aim is to ensure that people who genuinely need support continue to receive the full benefits of state subsidies.

“No, it is not being tightened. It will just be ensured that it is properly targeted,” the state treasurer asserted.

The government projects significant budget savings through this policy. Although the exact figure is still being calculated, Purbaya provided an initial indication of the potential funds that could be saved.

“There will be savings, we are still calculating. Approximately one-tenth, if I am not mistaken,” he said.