Govt signals higher prices for non-subsidized fuel, discussions nearing completion

By Calvin Purba

The Ministry of Energy and Mineral Resources (ESDM) has hinted at a potential adjustment in non-subsidized fuel prices.

Bahlil Lahadalia, Minister of ESDM, said that non-subsidized fuel prices will follow market rates. He explained that discussions between the ministry, state-owned oil and gas firm PT Pertamina, and private fuel retailers are almost complete.

“Non-subsidized fuel is based on market prices. We will see when the adjustment will be implemented, but based on our meetings with Pertamina and private business entities, it is nearly finalized,” Bahlil said on Friday (17/4).

Previously, the government stated it would maintain subsidized fuel prices through the end of 2026, citing sufficient fiscal capacity despite potential pressure from surging global oil prices.

Read also : Indonesia to keep subsidized fuel prices unchanged through end-2026

Finance Minister Purbaya Yudhi Sadewa said the government will continue allocating fuel subsidies in the state budget and does not plan to remove them.

“With regard to subsidized fuel prices, the subsidy will not be removed and will remain in place until the end of 2026,” he said during a press conference in Jakarta on Monday.

The government has modeled scenarios including crude oil prices averaging $100 per barrel and expects to keep the fiscal deficit at around 2.9% of gross domestic product through spending efficiency measures.

Editing by Reiner Simanjuntak