Bahlil, Purbaya craft a tighter fuel subsidy plan
The government is targeting beneficiaries in deciles 9 and 10 as subsidy and compensation spending reached Rp 233 trillion in the first half of 2026.
Minister of Energy and Mineral Resources Bahlil Lahadalia met Finance Minister Purbaya Yudhi Sadewa in Jakarta on Tuesday to design a more targeted fuel subsidy distribution model. Bahlil said oil and gas subsidies have still leaked to wealthier groups, including recipients in deciles 9 and 10, so hundreds of trillions of rupiah have not fully reached those entitled to them. The meeting was said to align with President Prabowo Subianto’s directive to overhaul oil and gas sector subsidies without raising subsidized fuel prices. At the same time, the government had paid Rp 233 trillion in subsidies and compensation to state-owned enterprises through the first half of 2026, driven by higher consumption of subsidized fuel, 3-kilogram LPG and subsidized electricity.