Indonesia eyes Pertalite curbs for wealthiest 20%
JAKARTA, thekabarnews.com—Indonesia is preparing to restrict access to subsidized Pertalite gasoline for its wealthiest households. The government seeks to make energy assistance more targeted and...
JAKARTA, thekabarnews.com—Indonesia is preparing to restrict access to subsidized Pertalite gasoline for its wealthiest households. The government seeks to make energy assistance more targeted and reduce pressure on the state budget.
Energy and Mineral Resources Minister Bahlil Lahadalia and Finance Minister Purbaya Yudhi Sadewa said the proposed policy would focus on people in expenditure deciles 9 and 10. These represent the top 20 percent of Indonesia’s population based on relative household spending.
The restriction could be introduced gradually before the end of 2026. The government is still testing its data system and finalizing eligibility rules.
“We are discussing the possibility of implementing a limit on Pertalite subsidies for the upper levels, maybe the 9 and 10 deciles. This would allow us to gradually reduce the subsidy in a few months. Rather than now,” Purbaya said at the Finance Ministry’s office in Jakarta on Tuesday, August 11.
His statement means the government is considering gradually reducing subsidized Pertalite access for the two highest expenditure groups. This reduction would begin over the coming months.
According to Statistics Indonesia (BPS), a decile divides the population into 10 equally sized groups based on expenditure or welfare rankings. Deciles 9 and 10 represent the highest-spending 20 percent. The government uses this approach instead of setting a single fixed household income threshold.
Purbaya said Pertamina could use its customer database to identify buyers who no longer qualify for subsidized fuel. Those excluded would have to purchase Pertamax or another non-subsidized product.
“Later, we will test the system; Pertamina will also test the system. I have already seen the system. They can just not buy the subsidized ones for grades 9-10. He has to pay the price of Pertamax or other (non-subsidized) fuels,” he said.
Pertamina’s existing Subsidi Tepat platform links a buyer’s identity and vehicle documents to a QR code. The company requires four-wheeled vehicles nationwide to use QR codes when purchasing Pertalite. Motorcycles and three-wheeled vehicles are not yet subject to the same registration requirement.
Bahlil said the reform was necessary because some government assistance continues to benefit people who can afford market-priced fuel.
“All this time, we know that some of the subsidies are not targeted correctly. Why should we subsidize the rich, like with Pertalite? Decile 9 and decile 10 are still affected and still receive subsidies,” he said.
The World Bank’s June 2026 Indonesia Economic Prospects report supports that concern. Its analysis of 2025 household survey data found that Indonesia’s wealthiest 20 percent received more than half of the benefits from fuel subsidies.
The financial stakes are significant. Indonesia’s 2026 state budget allocates Rp210.06 trillion for energy subsidies, including Rp105.41 trillion for subsidized fuel and three-kilogram LPG cylinders. The Finance Ministry reported this figure.
Bahlil said the government would also consider vehicle types before implementing the restriction. The government has not yet announced the final criteria, appeals process or measures for people with inaccurate economic data.
Asked when the policy could begin, Purbaya said, “Maybe before next year. Later at the end of the year.”
That timetable points to a possible rollout by late 2026. This timeline would be subject to successful system testing and completion of the technical regulations.
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