Indonesian Political, Business & Finance News

Pertamina Awaits Government Direction on Potential Subsidised Fuel Restrictions

| | Source: KOMPAS Translated from Indonesian | Energy
Pertamina Awaits Government Direction on Potential Subsidised Fuel Restrictions
Image: KOMPAS

PT Pertamina Patra Niaga is awaiting direction from the government regarding the proposed restriction of subsidised fuel.

If the proposal becomes a regulation, Pertamina will immediately implement it according to government directives.

“As the operator, we are waiting and will follow the government’s direction. The portion of the technical guidelines and procedures lies with the government, whether through the Downstream Oil and Gas Regulatory Agency (BPH Migas) and the National Energy Council (DEN), or whether BPH will issue the regulation,” explained Corporate Secretary of Pertamina Patra Niaga, Roberth M.V. Dumatubun, as quoted by Kontan, Friday (15/5/2026).

Satya said the scheme for purchasing subsidised fuel would be based on engine cylinder capacity and vehicle type.

This scheme has the potential to reduce the volume of subsidised fuel by around 10-15 percent.

“For Pertalite and diesel fuel, if Presidential Regulation 191, which was also discussed yesterday at the DEN with (Pertamina) Patra Niaga, can be realised, we can limit it, even though it is still a commodity subsidy. Based on CC (cubic capacity) and vehicle type, our calculations show a potential saving of 10-15 percent of the volume,” said Satya.

The weakening of the Rupiah has the potential to turn this proposal into a reality, as the fiscal situation is under pressure as a result.

“The Minister (of ESDM) and other ministers are currently discussing this. So, we will just wait,” said Laode, as quoted by Kompas.com, Wednesday (13/5/2026).

“There is no other information available besides what is currently known. So, we will just see what happens next,” he explained.

View JSON | Print