Antara News·Indonesia·Thursday, August 20, 2026 at 09:38 AM

Indonesia eyes 10 percent energy savings with fuel restrictions

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Bayu Saputra, Kuntum Khaira

Jakarta (ANTARA) - Indonesian Finance Minister Purbaya Yudhi Sadewa said a plan to restrict subsidized fuel purchases by households in the top income decile, or decile 10, could save around 10 percent of the government’s energy subsidy budget.

Speaking after attending a working meeting with the Budget Committee of the House of Representatives (DPR RI) in Jakarta on Thursday, Purbaya said the restriction was aimed at making fuel subsidies more targeted.

Indonesia has allocated Rp210.1 trillion (US$11.8 billion) for energy subsidies in its 2026 state budget, accounting for about 65.87 percent of the total Rp318.9 trillion (US$17.9 billion) subsidy allocation.

“There will be budget savings, but we are still calculating the figure. It will be around one-tenth, if I’m not mistaken. Let’s take the flat figure of one-tenth,” Purbaya said.

Energy and Mineral Resources Minister Bahlil Lahadalia said on Wednesday that proposed restrictions on Pertalite purchases by people in income deciles 9 and 10 were still under discussion and that distribution of the subsidized fuel was continuing as usual.

“The restriction on Pertalite is still under discussion,” Bahlil said.

If no decision has been reached, Pertalite distribution will continue under the current rules, he added.

Under the existing rules, buses and trucks are allowed to purchase up to 200 liters of Pertalite per day, while four-wheeled vehicles are allowed to purchase up to 50 liters per day.

Bahlil said Pertalite was intended for people eligible for energy subsidies and urged wealthier households to use non-subsidized fuel instead.

“Those who are already wealthy and financially capable should not take away the rights of the people. Subsidies are meant for our fellow citizens who are entitled to receive them,” Bahlil said.

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