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Indonesia to gradually restrict Pertalite for top income groups | Caixin Society
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Indonesia to gradually restrict Pertalite for top income groups

Jakarta (ANTARA) – Finance Minister Purbaya Yudhi Sadewa said the policy to restrict purchases of subsidized fuel, particularly Pertalite, is aimed at ensuring that fuel subsidies reach their intended beneficiaries.He said the policy specifically responds to input from the House of Representatives, which has highlighted continued leakage in the distribution of subsidized fuel.“Let me clarify that prices are not going up. However, when I was at the House of Representatives, I was instructed to ensure that subsidies are better targeted,” Purbaya told reporters at the Ministry of Finance office in Jakarta on Wednesday.According to Purbaya, the policy will be implemented gradually, with the government monitoring its impact on the economy as part of the evaluation process.“We will gradually implement the policy to see the impact. For example, if we stop the top decile, meaning they are no longer allowed to buy Pertalite, what will the impact be on the economy? So, we will do it gradually,” he said.The restrictions will target people in the ninth and tenth deciles. Purbaya previously explained that people in these groups would be directed to purchase non-subsidized fuel.The government is still discussing the mechanism for controlling fuel subsidies and expects to implement it once all the necessary systems are ready.Purbaya said the measure was also necessary because global oil prices remained volatile, requiring the government to take appropriate steps to safeguard the state budget (APBN) through the end of the year.The policy was discussed following a visit by Energy and Mineral Resources Minister Bahlil Lahadalia to the Ministry of Finance office on Tuesday (Aug. 11).Bahlil said subsidies for oil and gas products had not yet been fully targeted, with even people considered financially capable still receiving subsidized fuel.Therefore, Bahlil met with Purbaya to seek a more targeted distribution system for fuel and gas products, given that hundreds of trillions of rupiah in public funds are allocated to energy subsidies.