Purbaya Yet to Assess Subsidy Impact of Potential Shift to Pertalite
Jakarta. Finance Minister Purbaya Yudhi Sadewa said the government has not estimated the potential fiscal impact of Pertamax users switching to lower-priced Pertalite following this week's sharp increase in non-subsidized fuel prices, as concerns grow that higher demand for subsidized fuel could strain the 2026 energy subsidy budget.
Purbaya acknowledged that some consumers may opt for cheaper fuel but dismissed the possibility of a large-scale migration, arguing that fuel choices are also determined by vehicle specifications.
"We have not calculated the budgetary impact. There will certainly be some vehicles switching, but not all of them, because cars that use Pertamax are designed for Pertamax," Purbaya told reporters at the Parliament Complex in Jakarta on Thursday.
He said the government currently has no data on how many Pertamax users may switch to Pertalite after the latest fuel price adjustment.
Purbaya added that the management of subsidized fuel consumption and distribution falls under the authority of the Energy and Mineral Resources Ministry.
"You should probably ask Energy Minister Bahlil. He knows that issue better," he said.
Concerns over consumer migration have intensified after the price difference between Pertamax and Pertalite widened significantly. A substantial shift toward Pertalite could push consumption beyond the allocated quota and increase the government's energy subsidy burden in 2026.
Separately, Center of Reform on Economics economist Mohammad Faisal said a shift from Pertamax to Pertalite is highly likely following the steep increase in non-subsidized fuel prices.
However, Faisal noted that the migration would not be entirely unrestricted because the government has implemented various controls over the distribution of subsidized and assigned fuels.
“Switching to a lower-grade fuel is not easy today because there are usage controls, quotas, and supply restrictions," Faisal said.
Still, he urged the government to closely monitor the impact of higher Pertamax prices on Pertalite demand to ensure subsidized fuel distribution remains on target and within the quota set by the government.
Tags: Keywords:Related Articles
Indonesia Eyes Up to 19 Million Kiloliters of Subsidized Diesel in 2027
Subsidized diesel remains heavily supported by the government and is currently sold at Rp 6,800 ($0.38) per liter.Fuel Subsidies Largely Benefit Private Vehicles, Not Public Transport
An expert urges Indonesia to redirect fuel subsidies to public transport, saying 93% now benefits private vehicles.Purbaya Yet to Assess Subsidy Impact of Potential Shift to Pertalite
Purbaya says the government has not assessed the fiscal impact of a potential shift from Pertamax to subsidized Pertalite.Indonesia Targets Up to 6.5% Growth and 2.4% Budget Deficit in 2027
Indonesia has set a 2027 economic growth target of up to 6.5% while maintaining a budget deficit below the legal ceiling of 3% of GDP.Indonesia Aims for Rp 16,800-17,500 Rupiah in 2027 Budget
Indonesia targets inflation of 1.5%-3.5% and a rupiah range of Rp 16,800-17,500 per US dollar under its agreed 2027 state budget framework.Indonesian Stocks Retreat Amid US-Iran Conflict, Fuel Price Pressures
JCI closed lower as escalating US-Iran tensions and higher Pertamax prices fueled concerns over inflation and growth.Indonesia Holds Subsidized Fuel Prices as Drivers Abandon Pertamax
Indonesia kept subsidized fuel prices unchanged despite a steep Pertamax hike that triggered long queues for cheaper fuel.Indonesia Prepares Stimulus as Pertamax Price Jumps 32%
Indonesia is preparing stimulus measures after Pertamax fuel prices surged 32%, raising inflation concerns.Rate Hike, Fuel Price Surge Put Indonesia’s Middle Class Under Pressure
Indonesia's middle class faces mounting pressure as higher interest rates and fuel prices squeeze household budgetsHigher Pertamax Prices Risk Swelling Demand for Subsidized Gasoline
A sharp increase in Pertamax prices could push consumers toward subsidized fuels and increase the energy subsidy burden.The Latest
The Last Resident: Elderly Woman Refuses to Leave a Sinking Central Java Village
As rising seas engulf her village, a 65-year-old woman remains alone in the last habitable house.Indonesia Halts Expansion of Free Meal Kitchens Following Governance Concerns
Indonesia halted new free meal kitchens as authorities review the program amid funding, governance and hygiene issues.JCI Showing Signs of Recovery as Investor Confidence Improves
Indonesia’s benchmark stock index jumped 4.1% as easing external pressures and a firmer rupiah lifted sentiment.IFG, Lemhannas Deepen Collaboration on Future Leaders
IFG sends 43 executives to Lemhannas leadership training to strengthen national values and economic resilienceChinese Car Sales Jump 72% in Indonesia Amid EV Boom
Chinese automakers posted a 72% sales jump in Indonesia, driven by strong demand for electric vehicles.Most Popular
