Indonesia mulls Pertalite petrol sales curb for wealthiest 20%

By the Editorial Team · Thursday, September 3, 2026

The Indonesian government is evaluating plans to restrict Pertalite petrol sales to the top 20% of income earners to improve the targeting of energy subsidies. This move aims to ensure that subsidies benefit lower-income households and address budgetary pressures caused by increased demand and potential quota overruns.

The Indonesian government is considering restricting sales of Pertalite petrol to higher-income households as part of efforts to better target energy subsidies. Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday that the policy is under active review, with the accuracy of beneficiary data posing a key challenge.

Pertalite is classified as a special assignment fuel type and is currently subsidized by the government. The proposed measure aims to limit its availability to consumers in the top two socio-economic deciles—defined as deciles 9 and 10—based on income levels. "We want the subsidy to reach the intended recipients," Bahlil said following a meeting with the House of Representatives Commission XII, which oversees energy and natural resources. He emphasized the importance of reliable data to ensure proper targeting.

The minister noted that the government is carefully verifying the socio-economic decile classifications to avoid technical errors. "We are continuously checking these deciles. We don’t want a situation where our intentions are good, but the implementation falls short of our expectations because of invalid data," he added.

This potential shift in policy comes amid a substantial allocation for energy subsidies in Indonesia’s 2026 state budget. The energy subsidy ceiling has been set at 210.06 trillion rupiah, covering select fuel types, 3 kg liquefied petroleum gas cylinders, and electricity. When combined with compensation budgets, total fiscal support for energy reaches 381.3 trillion rupiah.

The review follows observed changes in national fuel consumption patterns. State-owned energy holding company Pertamina has reported a migration of consumers from non-subsidized to subsidized fuels such as Pertalite petrol and Solar diesel. Pertamina projects that these subsidized fuel distributions will exceed the quota established in the 2026 budget. The company attributes this trend to robust economic activity and increasing demand across various sectors.

The Indonesian government’s consideration of restriction measures reflects ongoing efforts to balance subsidy provision with fiscal sustainability while ensuring support reaches the intended lower-income populations. However, final decisions hinge on the successful validation of beneficiary data to prevent unintended exclusion or inefficiencies.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.