System Testing: Restrictions on Pertalite Fuel Users to Be Implemented Gradually

Jakarta - Finance Minister Purbaya Yudhi Sadewa has stated that the government is discussing the possibility of restricting subsidised Pertalite fuel for upper-income groups. Purbaya estimated the restriction would target the 9th and 10th deciles.

Purbaya explained that the government is currently studying the distribution system prepared by Pertamina. He mentioned that high-income groups would later have to switch to using non-subsidised fuel products.

This is to ensure the State Budget (APBN) is maintained and energy subsidies are better targeted. “So we were discussing the possibility of implementing restrictions on Pertalite subsidies for the upper levels, maybe deciles 9 and 10, so that in a few months we can gradually reduce it. We are studying the system, I have also seen Pertamina’s system and it is quite good so it can be implemented,” he said after a meeting with Minister of Energy and Mineral Resources Bahlil Lahadalia in Jakarta on Tuesday.

Purbaya noted that the government is currently testing a digital system to screen consumer data. He said that the plan is for the 9th and 10th decile groups to have their access restricted so they can no longer purchase subsidised Pertalite at petrol stations.

Meanwhile, Minister of Energy and Mineral Resources Bahlil Lahadalia said the plan to restrict Pertalite aims to tidy up the energy distribution pattern, which has so far been off-target. According to him, subsidies amounting to hundreds of trillions of rupiah must be allocated to the less fortunate. “Why should the rich be subsidised, Pertalite for example. Decile 9 and 10 still get subsidies. So, the hundreds of trillions in subsidies must really be given to our brothers and sisters who are entitled to receive them,” Bahlil said.