Indonesia Maintains Subsidized Fuel Prices Amid Global Oil Volatility

Jakarta – The Indonesian government has affirmed its commitment to maintaining current prices for subsidized fuel, despite recent increases in global crude oil prices. This decision reflects the government’s confidence in the nation’s fiscal strength and its dedication to shielding consumers from economic hardship, particularly in the lead-up to Eid al-Fitr.

Fiscal Stability and Budgetary Capacity

Finance Minister Purbaya Yudhi Sadewa stated on Tuesday, March 10, 2026, that the State Revenue and Expenditure Budget (APBN) remains robust, even with the assumption of a US$70 per barrel oil price. According to Minister Sadewa, the recent surge in oil prices has not yet reached a level that necessitates a budget adjustment. “We are still safe and still strong. This increase has only been a few days, we have a full year, the assumption is 70. It’s only been a few days, it’s not enough to change our budget,” he explained.

This assurance comes as global crude prices have recently climbed, but remain within a manageable range for the Indonesian economy. The Jakarta Globe reported that Minister Sadewa acknowledged the potential for increased energy subsidy burdens but emphasized that fiscal management remains under control.

No Price Adjustments Before Eid

Energy and Mineral Resources Minister Bahlil Lahadalia echoed this sentiment, confirming that there are currently no plans to raise subsidized fuel prices at least until the upcoming Eid al-Fitr holiday. Minister Lahadalia emphasized the government’s role in ensuring price stability, stating, “The state is here to ensure that even though there is an increase in world crude oil prices, the subsidies remain the same, there will be no price increase, for subsidized oil.”

Supply and Import Considerations

Authorities are similarly working to prevent panic buying by assuring the public that fuel supplies are adequate. Minister Lahadalia noted that fuel reserves currently stand at 21-25 days’ worth of supply and are being continuously replenished. Indonesia primarily imports crude oil from the Middle East, while importing finished oil products from Southeast Asian countries and utilizing domestic production.

Potential for Future Adjustments

While the government is currently maintaining subsidized fuel prices, Finance Minister Purbaya Yudhi Sadewa has indicated that price adjustments may be considered if global oil prices continue to soar and exceed the APBN’s capacity. He highlighted the need for careful monitoring of oil price movements and a cautious approach to budgetary responses.

Key Takeaways

• The Indonesian government is currently maintaining subsidized fuel prices.
• The APBN is considered strong enough to absorb recent increases in global oil prices.
• No price adjustments are planned before Eid al-Fitr.
• Fuel supplies are sufficient, and the government is discouraging panic buying.
• Future price adjustments may be considered if oil prices continue to rise significantly.