Indonesia reviews Pertalite subsidy restrictions for high-income groups

The Indonesian government is currently reviewing a proposal to restrict subsidized Pertalite fuel purchases for high-income groups, specifically those in deciles 9 and 10. Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the mechanism is still under study and that current regulations remain in effect until a final decision is reached.

Under existing rules, private four-wheeled vehicles are limited to 50 liters of Pertalite per day. Bahlil emphasized that subsidies should be prioritized for those in need, noting that wealthy citizens should not utilize resources intended for the public.

Economists have raised concerns regarding the potential impact of such restrictions. Yusuf Rendy Manilet from the Center of Reform on Economics (CORE) warned that forcing high-income households to switch from Pertalite to Pertamax could effectively represent a nearly 60% increase in fuel costs for those users. While the policy could potentially save the state between Rp8.9 trillion and Rp17 trillion, experts suggest the fiscal benefits may be limited compared to total energy subsidy expenditures.

Separately, Pertamina has implemented price adjustments for non-subsidized fuels as of August 2026. Prices for Pertamax, Pertamax Green 95, and Pertamax Turbo have decreased, while subsidized fuels like Pertalite and Biosolar remain unchanged.