Government prepares ban on Pertalite purchases for deciles 9-10

The government is preparing to restrict Pertalite purchases for households in deciles 9 and 10 so fuel subsidies are better targeted. Finance Minister Purbaya Yudhi Sadewa said the upper-income group would no longer be able to buy subsidized fuel and would be directed to nonsubsidized products such as Pertamax. The policy is not yet in effect because the government is still testing the system with PT Pertamina (Persero) and preparing a gradual rollout. Purbaya stressed that Pertalite’s price will not rise; only the target recipients will change. Energy and Mineral Resources Minister Bahlil Lahadalia said hundreds of trillions of rupiah in oil and gas subsidies are still leaking to well-off groups, including owners of luxury vehicles. Under the scheme being discussed, motorcycles are not targeted for restrictions.