Purbaya Sees 10% State Budget Savings from Fuel Subsidy Restrictions

Indonesia's Finance Minister Purbaya Yudhi Sadewa expressed confidence that capping subsidized fuel distribution for the lowest 10 percent of income earners could trim up to 10 percent of the energy subsidy budget, announced during a meeting with the DPR Budget Committee in Jakarta on August 20, 2026. The government has set aside Rp210.1 trillion for energy subsidies in the 2026 State Budget, accounting for 65.87 percent of the total Rp318.9 trillion subsidy allocation.

Purbaya acknowledged that the precise savings would depend on the final calculations, but anticipated a significant reduction. Meanwhile, the distribution of Pertalite fuel for consumers in the ninth and tenth income deciles remains under consideration, with no changes currently in effect.