Indonesia plans Pertalite subsidy restrictions based on vehicle types

The Indonesian government is developing a scheme to restrict the purchase of subsidized Pertalite fuel, using vehicle types as a primary metric to ensure subsidies reach the intended recipients. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that vehicle types serve as a proxy for a household's economic decile, making it easier to monitor at gas stations compared to direct economic verification.

The policy aims to target higher-income groups, specifically those in deciles 9 and 10, to prevent the misuse of state energy subsidies. Finance Minister Purbaya Yudhi Sadewa indicated that the restrictions would be implemented gradually, potentially starting with decile 10, with a target implementation window before 2027.

To ensure accuracy, the government is awaiting updated socioeconomic data from the Central Bureau of Statistics (BPS) through an ongoing economic census. While the specific types of vehicles to be restricted have not yet been disclosed, officials emphasized that the goal is to optimize the national budget and ensure energy assistance is prioritized for those in need.