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View all search resultsIndonesia weighs subsidized fuel curbs for luxury cars
The government has pledged to keep Pertalite prices unchanged despite continued volatility in global crude prices, while exploring other ways to rein in the rising cost of subsidies.
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Attendants of a gas station owned by state-owned energy holding company Pertamina serves customers on Feb. 27, 2025, in Semarang, Central Java (Antara/Aprillio Akbar). (Antara/Aprillio Akbar)
T
he government is mulling barring households in the top two socioeconomic groups from buying Pertalite, the subsidized RON 90 gasoline, with luxury car owners potentially among those targeted, Finance Minister Purbaya Yudhi Sadewa said on Tuesday.
The government is exploring ways to restrict Pertalite purchases by those classified in deciles 9 and 10 under the National Socioeconomic Single Data (DTSEN), which together represent the top 20 percent of households, though it has yet to decide how the restrictions would work.
"We have discussed the possibility of implementing restrictions on Pertalite subsidies for those in upper-income groups. So that later, not now, but in a few months, we can gradually reduce [their access]," Purbaya told reporters, as quoted by Kompas.com.
Read also: Fuel price hike puts further strain on workers, economy
Purbaya said the government was still preparing and testing a system to ensure subsidized fuel reaches eligible recipients, adding that the plan would incorporate proposals from Energy and Mineral Resources Minister Bahlil Lahadalia.
Bahlil said the two ministers had also discussed broader changes to the distribution of energy subsidies, which he said were still benefiting some high-income households.
"We know that some subsidies have not been properly targeted. Why should we subsidize rich people? Take Pertalite, for example," Bahlil said.
