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🇮🇩 Indonesia /Economy & Trade

Pertamina awaits regulations on Pertalite restrictions for higher-income groups

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Pertamina is awaiting new government regulations regarding the restriction of Pertalite fuel for higher-income groups.
  • The plan aims to ensure fuel subsidies are targeted towards those who truly need them, excluding the wealthy.
  • The government is still refining the system for implementation, but motorcycles will not be affected.

State-owned energy company PT Pertamina (Persero) is awaiting updated government regulations concerning the potential restriction of Pertalite fuel sales to higher-income households. The company stated that the proposed scheme is currently undergoing detailed review and refinement in collaboration with the government.

We will follow the final regulations. It is still being studied and detailed with the government.

— Roberth MV DumatubunStating Pertamina's position on the proposed Pertalite restrictions.

Roberth MV Dumatubun, Corporate Secretary of Pertamina Patra Niaga, affirmed that the company will adhere to the regulations ultimately established by the government. "We will follow the final regulations. It is still being studied and detailed with the government," Roberth told Republika.

This initiative follows remarks by Finance Minister Purbaya Yudhi Sadewa, who indicated that the government is considering limiting Pertalite purchases for individuals in the 9th and 10th deciles of income. These groups would reportedly need to switch to non-subsidized fuels like Pertamax.

The 9th and 10th deciles cannot buy subsidized fuel. They must pay the price of Pertamax or others.

— Purbaya Yudhi SadewaExplaining the potential impact of the proposed policy on higher-income groups.

Energy and Mineral Resources Minister Bahlil Lahadalia emphasized that the discussion aims to ensure fuel subsidies are allocated effectively. He argued that trillions of rupiah in subsidies should benefit only the intended recipients, not affluent individuals. "Part of the subsidies are not well-targeted. Why should we subsidize the rich? For example, Pertalite. Deciles 9 and 10 still receive subsidies," Bahlil stated.

Part of the subsidies are not well-targeted. Why should we subsidize the rich? For example, Pertalite. Deciles 9 and 10 still receive subsidies.

— Bahlil LahadaliaJustifying the need for the proposed subsidy reform.

Minister Lahadalia also clarified that motorcycles are not the target of these proposed restrictions. He cited luxury vehicles like BMWs and Mercedes-Benz as examples of vehicles that should not be using subsidized fuel. Despite global oil price fluctuations, the minister assured that subsidized fuel prices would not increase, though non-subsidized prices might be adjusted accordingly.

If it goes down, it goes down, if it goes up, it is also corrected upwards.

— Bahlil LahadaliaReferring to potential adjustments in non-subsidized fuel prices.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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