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Indonesia plans to restrict subsidized LPG and fuel using welfare deciles
The Indonesian Ministry of Energy and Mineral Resources (ESDM) is planning to tighten the distribution of subsidized energy, specifically 3 kg LPG and Pertalite fuel, to ensure subsidies reach the intended recipients. The government intends to use welfare deciles from the National Socio-Economic Single Data (DTSEN) to determine eligibility. This decile system, based on data from Statistics Indonesia (BPS), categorizes households from decile 1 (most vulnerable) to decile 10 (most prosperous).
Director General of Oil and Gas Laode Sulaeman stated that the ministry is discussing the implementation of this scheme with BPS and PT Pertamina. The move comes as the projected demand for 3 kg LPG in 2026 is expected to reach approximately 8.677 million metric tons, exceeding the state budget (APBN) quota of 8 million metric tons.
Economists have noted that current fuel subsidies are often misdirected, with data suggesting that the upper-middle class (deciles 9 and 10) accounts for approximately 42% of subsidized fuel consumption. The government is currently reviewing vehicle specifications that may be restricted from using Pertalite fuel to further improve subsidy accuracy.
Entities
Central Bureau of Statistics · Indonesia · Laode Sulaeman · Ministry of Energy and Mineral Resources · PT Pertamina · PT Pertamina (Persero) · Statistics Indonesia
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The Ministry of Energy and Mineral Resources (ESDM) plans to restrict 3 kg LPG purchases based on welfare deciles. ulasan.co · www.viva.co.id
- [○ 1 SOURCE] The 2026 state budget (APBN) LPG quota is set at 8 million metric tons. ulasan.co
- [○ 1 SOURCE] LPG demand for 2026 is projected to reach approximately 8.6 million metric tons. ulasan.co
- [● 3 SOURCES] Decile-based regulations will apply to both fuel (BBM) and 3 kg LPG. ulasan.co · www.viva.co.id
- [● 3 SOURCES] ESDM will discuss the use of welfare data with the Central Bureau of Statistics (BPS) and PT Pertamina. ulasan.co · www.viva.co.id
- [● 3 SOURCES] The policy aims to ensure subsidized LPG distribution is more targeted to eligible groups. ulasan.co · www.viva.co.id