Jakarta, IndonesiaSentinel.com — Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, announced that owners of luxury vehicles will soon be barred from purchasing subsidized fuel. This move comes as part of a new regulation, set to be issued shortly, aimed at ensuring that subsidized fuel is distributed more effectively to those who truly need it.
“Subsidized fuel is intended for those who are entitled to it—namely, the middle and lower economic classes,” Bahlil stated following a meeting with the Indonesian House of Representatives’ Commission VII on Tuesday, August 27, 2024.
While Bahlil did not provide specific details on who will still be eligible to purchase subsidized fuels such as Pertalite or subsidized diesel, it has been suggested that eligibility will be determined by the vehicle’s engine capacity. According to information received by CNBC Indonesia, vehicles with diesel engines over 2,000 cubic centimeters (cc) will no longer be able to purchase subsidized diesel, and gasoline-powered vehicles with engines over 1,400 cc will not be eligible for Pertalite.
“We’re still discussing the specifics, so I can’t provide all the details yet,” Bahlil said.
The new regulation is expected to take effect on October 1, 2024. Bahlil emphasized that there will be a period for public awareness and education on the new rules once the regulation is issued.
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Earlier, Dadan Kusdiana, Secretary General of the Ministry of ESDM, questioned the appropriateness of subsidized fuel for luxury vehicles like the Toyota Fortuner and Mitsubishi Pajero. “Are these vehicles really in need of subsidized fuel? They’re high-end cars.”
The government is working on finalizing the criteria for who can access subsidized fuel and will launch programs to inform the public about the upcoming changes. “The criteria are being refined and are nearly finalized,” Dadan added.
(Ray)
