Pertalite's True Market Price is Rp16,100, Subsidy Burden Remains Heavy

The economic price of subsidised Pertalite fuel (RON 90) is actually Rp16,100 per litre, far above the pump price of Rp10,000, according to Deputy Speaker of the People’s Consultative Assembly (MPR) Eddy Soeparno. He explained that the government bears the difference between the market price and the retail price through the state budget (APBN), creating a significant fiscal burden. Similarly, subsidised diesel is sold at Rp6,800 per litre, while its actual production cost is Rp12,000 per litre.

Soeparno stated that Indonesia’s heavy reliance on energy imports is a primary cause of this vulnerability. National fuel demand reaches 1.6 million barrels per day, but domestic production is only around 600,000 barrels per day. This forces the government to spend more on imported raw materials, adding pressure to the state’s finances.

Beyond liquid fuels, the 3-kg LPG canister also carries a substantial subsidy. The economic price of a canister is approximately Rp56,000, but it is sold to the public for around Rp20,000 to Rp21,000, meaning the government covers a subsidy of roughly Rp36,000 per canister. With an annual LPG requirement of 8 million tonnes, 80% of which is imported, the financial strain is considerable. Soeparno noted that according to the National Energy Council (DEN), 63% of energy subsidies are mistargeted, failing to reach the intended beneficiaries. He concluded that a transition to renewable energy and decarbonisation is crucial for Indonesia to reduce its import burden in the future.