September 23, 2026 | 04:32 pm
TEMPO.CO, Jakarta - Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has confirmed that the price of subsidized fuel will not rise until the end of 2026. He said this amid global uncertainty resulting from the conflict in the Strait of Hormuz and the ongoing Russia-Ukraine war.
According to Airlangga, Indonesia can reduce the impact of global uncertainty by protecting the state budget (APBN), as ANTARA reported.
"We know the conflict in the Strait of Hormuz has been ongoing for six months—actually longer—and there is no end in sight. Meanwhile, the war in Ukraine remains unresolved, yet the world seems to have become desensitized to both conflicts. Of course, the volatility of oil prices is something that is constantly being monitored," said Airlangga at the ANTARA Business Forum (ABF) 2026 in Jakarta on Wednesday, September 23.
He explained that the government's purchase price for non-subsidized fuel currently hovers around US$90 per barrel when oil prices are below US$100 per barrel. Given these conditions, the Coordinating Minister assesses that the price of subsidized fuel can be maintained through the end of the year.
"Alhamdulillah for Indonesia, this transmission can still be cushioned by our state budget buffer. With oil prices currently below US$100 per barrel—specifically, the government's purchase price for non-subsidized fuel is around US$90—we can maintain the status quo through the end of the year; there will be no price hikes, particularly for subsidized fuel," said Airlangga.
Previously, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia confirmed that the government continues to prepare fuel stocks—particularly subsidized fuel—to meet public demand.
"We, the government, will prepare stocks to meet public needs, particularly regarding subsidized fuel," Minister Bahlil said in a statement after the National Energy Council (DEN) plenary meeting led by President Prabowo Subianto at the Merdeka Palace in Jakarta on Thursday, September 17.
However, Bahlil said the government is pushing for subsidies to be distributed more efficiently and to reach those who are truly entitled to them.
The minister also highlighted a shift in consumption from non-subsidized to subsidized fuel. Specifically, he said that financially capable individuals need to ensure that those who can afford non-subsidized fuel are not using subsidized fuel.
"The issue of shifting from those who previously did not use subsidies and now use subsidies, my advice as an Indonesian citizen to my brothers and sisters who can afford it, who apologize for using BMW cars, then to high-class cars, please use our heart too. Don't use subsidized fuel," said Bahlil.
He emphasized that subsidized fuel is intended for those eligible to receive it. Therefore, ensuring that the subsidies reach the intended recipients is crucial to their management.
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