Purbaya Sees 10% State Budget Savings from Fuel Subsidy Restrictions

August 20, 2026 | 04:22 pm

TEMPO.CO, Jakarta – Indonesia's Finance Minister Purbaya Yudhi Sadewa is optimistic that limiting subsidized fuel distribution for consumers in the 10th income decile could save around 10 percent of the energy subsidy budget.

He said the measure is intended to ensure that fuel subsidies are distributed more accurately to those who are eligible.

“No, (fuel subsidy) won't be tightened. It will just be ensured later on, as I know it, to be more targeted. Maybe in the upcoming months, we'll limit the 10th decile first,” Purbaya said after attending a working meeting with the Budget Committee of the Indonesian House of Representatives (DPR) in Jakarta on Thursday, August 20, 2026, as quoted by Antara.

The government has allocated Rp210.1 trillion for energy subsidies in the 2026 State Budget, equivalent to 65.87 percent of the total Rp318.9 trillion subsidy budget. Including compensation, the government's allocation for energy resilience stands at Rp381.3 trillion.

Purbaya said the government was still calculating the potential savings from restricting subsidized fuel distribution.

“There will be budget savings, but we are still calculating. It's approximately a tenth if I'm not mistaken. Take a flat tenth of it,” he said.

Pertalite Restrictions Still Under Review

Energy and Mineral Resources Minister Bahlil Lahadalia previously said that a plan to restrict Pertalite subsidies for consumers in the ninth and 10th income deciles was still under review. As a result, Pertalite distribution is continuing as usual.

“The limitation of Pertalite is still under discussion,” Bahlil said on Wednesday, August 19, 2026.

Bahlil said that if the government does not reach a decision on the proposed restrictions, Pertalite distribution will continue under the existing rules. Under the current regulations, buses and trucks are allowed to purchase up to 200 liters of Pertalite per day, while four-wheeled vehicles are limited to 50 liters per day.

Bahlil also emphasized that Pertalite subsidies are intended for people who are eligible to receive energy assistance. He urged higher-income consumers to use non-subsidized fuel instead.

“Those who are well-off, those who are capable, should not take away the people's right. The subsidy is for our eligible compatriots to receive,” Bahlil said.

How Much Could Electric Motorcycles Cut Indonesia's Fuel Subsidies?

38 menit lalu

SEFAS Group to Take Over Shell's Fuel Station Business in Indonesia

21 jam lalu

Indonesia Considers Restricting Pertalite Fuel for the Well-off

8 hari lalu

Indonesian Govt Says No Increase in Subsidized Fuel Prices

8 hari lalu

Indonesia's Pertamina Supplies 92,901 Liters of Aviation Fuel to Emirates A380

10 hari lalu

Indonesia Promotes Pyrolysis Technology to Turn Waste Into Renewable Fuel

10 hari lalu

Indonesia Lowers Domestic Flight Fuel Surcharge Cap to 30%

14 hari lalu

Govt Guarantees Stable Pertalite Fuel Prices Through 2026

14 hari lalu

Indonesia's Fuel Prices Fall in First Week of August: See Updated Rates

17 hari lalu

Pertamina Cuts Pertamax Fuel Prices Starting August 1: What to Know

19 hari lalu