Indonesia Targets Its Wealthiest 10% for Pertalite Restrictions—But the Ban Has Not Started Yet

Indonesia is moving closer to changing the way it distributes subsidised fuel.

The government plans to test restrictions on Pertalite purchases among households classified in Decile 10, the highest welfare group in Indonesia’s national socioeconomic database.

Finance Minister Purbaya Yudhi Sadewa said on August 20 that the government expects to begin with Decile 10 over the next several months as part of a broader effort to improve subsidy targeting.

The important detail is that the restriction is not yet in force.

Energy Minister Bahlil Lahadalia said on August 19 that the plan was still being studied and that existing Pertalite distribution rules remained unchanged.

Who Belongs to Decile 10?

Indonesia’s Ministry of Social Affairs divides households into ten welfare groups through the National Socioeconomic Single Data system, known as DTSEN.

Each group represents approximately 10% of Indonesian families.

Decile 1 contains the lowest-welfare 10%, while Decile 10 represents the highest-welfare 10%.

The classification is not simply based on monthly income.

Authorities consider information including employment, education, housing conditions, electricity capacity and asset ownership.

That means there is no single nationwide salary level at which a household automatically becomes Decile 10.

The Policy Has Become More Gradual

The government’s position has evolved during August.

On August 11, Purbaya said authorities were considering restrictions for both Deciles 9 and 10, potentially requiring those households to purchase non-subsidised fuel instead of Pertalite.

Nine days later, he described a more gradual approach.

Decile 10 would be tested first.

This suggests policymakers want to evaluate how the targeting system works before deciding whether the restriction should be expanded.

Why Target the Top Decile?

The government’s argument is essentially about efficiency.

Fuel-price support costs the state budget money, and policymakers argue that households with greater financial capacity should not consume the same subsidy intended to protect lower-income groups.

Indonesia’s 2027 fiscal framework has already identified better targeting of subsidies, compensation and social assistance as a policy priority.

Instead of eliminating energy support entirely, the government is trying to make access increasingly dependent on household eligibility.

Could It Save 10% of the Energy Subsidy Budget?

Purbaya estimates improved fuel-subsidy targeting could save roughly 10% of energy subsidy spending, although he also said the government is still calculating the figure.

Indonesia’s proposed 2027 energy subsidy allocation stands at IDR272.95 trillion.

A simple 10% calculation produces approximately:

IDR27.3 trillion.

But that should not be described as an official savings target.

The IDR272.95 trillion figure covers broader energy subsidies rather than only Pertalite. The government has not published a detailed calculation proving that a Decile 10 fuel restriction alone would save IDR27.3 trillion.

The number is therefore only a mathematical illustration.

Energy Subsidies Are Actually Increasing

The targeting reform comes at an interesting time.

Indonesia is proposing a larger energy-subsidy budget for 2027, not a smaller one.

The IDR272.95 trillion allocation is around 20.1% above the 2026 outlook of approximately IDR227.26 trillion.

That suggests the policy is less about immediately dismantling energy subsidies and more about changing who receives them.

The basic strategy is:

maintain price support → improve recipient targeting.

The Technical Challenge Is Data

Implementing the policy requires more than deciding that wealthy households should buy unsubsidised fuel.

Indonesia must connect socioeconomic information in DTSEN with the systems used to identify fuel buyers.

Purbaya has said Pertamina’s infrastructure is considered capable of supporting such restrictions and is being tested.

But socioeconomic rankings are not permanent.

The Social Affairs Ministry says decile status can change as household circumstances change, and citizens can request data updates if the classification no longer reflects their situation.

Incorrect data could therefore become one of the largest implementation risks.

The Two Types of Targeting Error

A subsidy system can fail in two directions.

An inclusion error occurs when financially capable households continue receiving a benefit intended for poorer groups.

An exclusion error happens when a household that genuinely needs assistance is incorrectly denied access.

The second problem could be especially sensitive for fuel because many Indonesians depend on vehicles for work and income-generating activities.

A phased pilot focused first on Decile 10 may give authorities an opportunity to identify such problems before any wider implementation.

Decile 10 Can Still Buy Pertalite Today

As of August 22, 2026, Decile 10 households have not been nationally blocked from buying Pertalite.

Purbaya has referred to implementation in the coming months, while Bahlil says the plan remains under review.

No final nationwide effective date has been confirmed.

Several important details also remain unanswered, including how buyers will be identified, whether eligibility will be linked to a vehicle or household, and what appeals mechanism will exist for incorrect socioeconomic data.

Could Decile 9 Be Next?

Possibly, but it is not yet a confirmed second stage.

Both Deciles 9 and 10 appeared in the government’s initial August 11 discussion.

The latest approach, however, starts with Decile 10.

The likely sequence is therefore to test the highest welfare group first, evaluate the system and then decide whether broader restrictions are appropriate.

Bottom Line

Indonesia is preparing to use household welfare data to make its fuel subsidies more selective.

Decile 10—the highest-welfare 10% of Indonesian families—is expected to become the first group tested under the planned Pertalite restrictions.

The government believes better targeting could generate significant fiscal savings, with Finance Minister Purbaya citing a rough estimate of around 10% of energy subsidy spending.

But the most important point is one of timing:

the restriction has not started yet.

As of August 22, the policy remains under preparation, with final implementation rules and an effective date still to be announced.