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View all search resultsIndonesia mulls vehicle-based curb on subsidized fuel
Under the latest plan disclosed by Finance Minister Purbaya Yudhi Sadewa, the government would restrict purchases by those classified in deciles 9 and 10 under the National Socioeconomic Single Data (DTSEN) system.
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No panic yet: A fuel price board is displayed on Sunday at a gas station on Jl. Jenderal Basuki Rachmat in East Jakarta. In Jakarta, prices for nonsubsidized fuels have risen sharply, with Pertamax Turbo (RON 98) increasing to Rp 19,400 (US$1.13) per liter from Rp 13,100, Dexlite to Rp 23,600 per liter from Rp 14,200 and Pertamina Dex to Rp 23,900 per liter from Rp 14,500. No significant lines were seen at the time the photo was taken, a day after the price increase. (JP/Iqro Rinaldi)
T
he government is considering using vehicle types to determine who can buy Pertalite, the subsidized RON 90 gasoline, as a vehicle can reflect its owner’s socioeconomic status, Coordinating Economy Minister Airlangga Hartarto said on Friday.
“We were previously [discussing] basing it on the type of vehicle. The type of vehicle reflects a person’s [socioeconomic] decile,” Airlangga told reporters in Jakarta on Friday.
Airlangga did not specify which vehicle types would face restrictions, saying the government was still working on the mechanism and more details would be announced once the rules were finalized.
“We will finalize it and refine [the mechanism],” Airlangga said, declining to provide details on which vehicle types would be subject to restrictions.
Read also: Indonesia weighs subsidized fuel curbs for luxury cars
The government had been exploring the idea of barring households in the top socioeconomic groups from buying Pertalite as it seeks to improve distributions of fuel subsidies and reduce its longstanding fiscal burden.
Under the latest plan disclosed by Finance Minister Purbaya Yudhi Sadewa, the government would restrict purchases by those classified in deciles 9 and 10 under the National Socioeconomic Single Data (DTSEN) system, which together represent the top 20 percent of households.
