April 17, 2026 | 10:56 am
TEMPO.CO, Jakarta - Indonesian Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the government will not raise subsidized fuel prices until the end of the year. He said that this decision follows the direction of President Prabowo Subianto to maintain price stability because the national energy supply is still secure.
"I convey to the public that, Insha Allah, our stock is above the minimum standard, both for diesel, gasoline, and LPG. Insha Allah it's safe, and once again I say that we have agreed, following the president's direction, that the price of subsidized fuel will not be raised until the end of the year," Bahlil said as quoted from a written statement on Friday, April 17, 2026.
Bahlil claimed that this policy is still safe from the perspective of the State Expenditure and Revenue Budget (APBN). He said that the price of Indonesian crude oil (ICP) is below the assumption in the State Budget, so the government has fiscal room to hold subsidized fuel prices.
"And now the average ICP price from January until now is not more than US$77. So we have only split US$7," he said.
Nevertheless, Bahlil admitted that the need for imported fuel remains high. National consumption reaches about 1.6 million barrels per day, while domestic production is only around 600,000 to 610,000 barrels per day. The government still needs to import about 1 million barrels per day to meet these needs.
Meanwhile, Chair of Commission VII at the Indonesian House of Representatives (DPR), Lamhot Sinaga, urged the government to consider adjusting fuel prices. This is a step to mitigate the pressure on the 2026 State Budget amid the surge in world oil prices.
Lamhot said that the government's policy of not raising fuel prices deserves appreciation, but future fiscal conditions require adaptive measures to maintain the stability of the state budget. Indonesia has been importing oil based on the prevailing global reference prices.
"When world oil prices soar to US$140 per barrel, while the assumption in the State Budget is only 70 U.S. dollars, the pressure on the fiscal budget becomes very significant. This is not a normal situation, but an emergency condition that requires a quick and measured response," Lamhot said in his statement in Jakarta, Saturday, April 4, 2026, as quoted by Antara.
He explained that the surge in world oil prices, which reached twice the assumed ICP in the 2026 State Budget, could significantly strain the budget.
He said that every US$1 increase in the price of a barrel of oil could burden the State Budget up to Rp6 trillion. Thus, an increase of up to US$70 could raise the pressure by hundreds of trillions of rupiah.
Lamhot added that the increase in oil prices was triggered by the escalation of geopolitical conflicts in the Middle East involving Iran, the United States, and Israel, as well as the potential disruption of global energy distribution, such as in the Strait of Hormuz. He said that, in such conditions, adjusting fuel prices should be understood as a strategic policy rather than just a price increase.
"If the government adjusts fuel prices, it is part of an effort to support the increasingly heavy burden of the State Budget. This is not a populist policy, but a realistic policy to maintain the fiscal stability of the state," he said.
Read: Indonesia: No Fuel Price Hike Until 2027, Says Energy Minister
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