Indonesia weighs subsidized fuel curbs for luxury cars
The government has pledged to keep Pertalite prices unchanged despite continued volatility in global crude prices, while exploring other ways to rein in the rising cost of subsidies.
Indonesia's government is considering imposing curbs on subsidized fuel prices for luxury car owners as a means to manage the rising cost of subsidies. Finance Minister Purbaya Yudhi Sadewa revealed that the government is looking into barring households in the top two socioeconomic groups from purchasing Pertalite, the subsidized RON 90 gasoline, which primarily benefits the wealthiest 20 percent of the population.
While the specifics of the restrictions have yet to be determined, Purbaya hinted at a gradual reduction in access to subsidized fuel for these high-income households.
The government remains committed to maintaining unchanged Pertalite prices despite global crude price volatility. They are exploring alternative methods to curb the escalating costs associated with subsidies. Meanwhile, Energy and Mineral Resources Minister Bahlil Lahadalia highlighted the need to address the issue of poorly targeted energy subsidies, emphasizing that some of these benefits are reaching high-income households unnecessarily. Lahadalia questioned the necessity of subsidizing the affluent, using Pertalite as an example.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
