The decision came after state-owned energy firm Pertamina said in December that it wanted to stop selling low octane gasoline in 2022 to reduce carbon emission.
Djoko said in an interview with CNBC Indonesia sales would continue in the less developed parts of the country because many people may not be able to afford the more expensive fuel.
He also said that Pertamina plans to upgrade its refineries to produce better quality fuels.
(Reporting by Bernadette Christina; Editing by Sanjeev Miglani)
