Government to Restrict Subsidised Fuel Purchases Based on Vehicle Type
Minister of Energy and Mineral Resources Bahlil Lahadalia is formulating criteria to restrict the purchase of subsidised fuel, specifically Pertalite, based on vehicle classification. He stressed that determining the types of vehicles eligible is a key point to ensure better-targeted distribution. The government is continuing inter-ministerial coordination to refine the technical regulations related to the planned restrictions.
“Regarding the restrictions, it will concern the type of vehicle. You shouldn’t be using a BMW or a Mercedes to buy subsidised fuel. That is what the Minister meant,” Bahlil said after a meeting with Minister of Finance Purbaya Yudhi Sadewa in Jakarta on Tuesday (11/8/2026).
Bahlil explained that the evaluation of the subsidy scheme was conducted because a large portion of the subsidy budget has been absorbed by the wealthy. The government wants to ensure that state funds are truly given to those who are entitled, in accordance with the President’s directive. “So far, we know that some subsidies have not been on target. How can we subsidise the rich, for example with Pertalite? The ninth and tenth deciles still receive subsidies,” he stated.
While restrictions for four-wheeled vehicles are being drafted, Bahlil confirmed that motorcycle users will not be affected by the planned policy. He also reiterated the government’s commitment not to raise subsidised fuel prices despite fluctuations in global crude oil prices. “No, motorcycles will not be restricted. The Minister and I agree that despite the uncertain Indonesian Crude Price, we are committed, based on the President’s orders, that subsidised fuel prices will not increase,” Bahlil asserted.
Meanwhile, Minister of Finance Purbaya Yudhi Sadewa stated that his ministry is studying the readiness of the distribution and monitoring systems to support the subsidy control policy. The fiscal authority’s main focus is to ensure the State Budget remains healthy by minimising subsidy leakage to affluent groups. Purbaya noted that his team has been monitoring Pertamina’s digital system, which is being prepared to implement the scheme. He projected that the reduction of subsidies for the upper class will be carried out gradually once the system has been properly tested. “We are testing the system; Pertamina has been testing it and I have seen the system. They can make it so that the ninth and tenth deciles cannot buy subsidised fuel. They would have to pay for Pertamax or other fuels. That is roughly the idea,” Purbaya concluded.