Indonesian Political, Business & Finance News

Subsidised Fuel Quota for 2027 Slashed, Pertalite to Be Restricted

| Source: CNBC Translated from Indonesian | Economy
Subsidised Fuel Quota for 2027 Slashed, Pertalite to Be Restricted
Image: CNBC

The government plans to tighten the distribution of subsidised fuel. In line with this policy, the subsidised fuel quota for 2027 is projected to fall significantly compared with this year.

The subsidised fuel quota for next year has been set at 20.09 million kilolitres (KL). This figure is far lower than the projected subsidised fuel quota for 2026, which reached around 48 million KL.

The Ministry of Finance has explained the reasons behind the quota reduction. Ferry Ardiyanto, Acting Director General of Economic and Fiscal Stability at the Ministry of Finance, said the government is preparing measures to control the distribution of subsidised fuel, including for Pertalite.

According to Ferry, initial discussions on the policy have been held by Finance Minister Purbaya Yudhi Sadewa together with Minister of Energy and Mineral Resources Bahlil Lahadalia.

Previously, Purbaya Yudhi Sadewa had also explained the government’s plan to restrict Pertalite purchases. The policy is said to be aimed at ensuring fuel subsidies can be distributed more accurately to the people who need them.

Purbaya stressed that the plan is not related to any increase in the price of Pertalite. According to him, the government has received a mandate from the House of Representatives to ensure that subsidy recipients truly come from eligible groups in society.

In addition to preparing the restriction scheme, the government together with Pertamina has also conducted research on technology that can be used to support more targeted Pertalite distribution.

Purbaya said the restrictions will not be implemented all at once. The government will carry them out gradually while observing the impact of the policy on the economy.

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