Govt Ensures Subsidized Fuel Prices Remain Stable Amid Strong Fiscal Position
- 07 Apr 2026 07:38 WIB
- Voice of Indonesia
Key Points
- Finance Minister Purbaya Yudhi Sadewa confirmed that subsidized fuel prices will remain unchanged until the end of 2026.
- He said Indonesia’s fiscal condition remains strong, with reserves sufficient to withstand global pressures.
RRI.CO.ID, Jakarta - The Indonesian government has confirmed that the price of subsidized fuel will remain unchanged until the end of 2026, despite pressure from global oil price fluctuations.
Finance Minister Purbaya Yudhi Sadewa emphasized that subsidies will continue as part of the government’s commitment to maintaining price stability and protecting public purchasing power.
“I emphasize that fuel subsidies will not be eliminated. They will remain in place until the end of the year,” Minister Purbaya said during a press conference in Jakarta on Monday, April 6, 2026.
He explained that the government has conducted simulations assuming global oil prices reach USD 100 per barrel. The results show that the budget deficit can still be maintained at around 2.9 percent of gross domestic product. Minister Purbaya assessed that Indonesia’s fiscal condition remains strong, with sufficient reserves to withstand global pressures.
The government’s Budget Surplus (SAL) currently stands at approximately IDR 420 trillion (approx. USD 24.66 billion), which serves as a safety net for emergencies. “The public has no need to worry, as our budget remains sufficient,” he said.
Minister Purbaya added that the likelihood of oil prices remaining above USD 100 per barrel in the long term is relatively small, indicating that risks to the State Budget remain under control.
Separately, the government is considering eliminating import duties on aircraft parts, a policy expected to reduce state revenue by around IDR 500 billion. However, the measure is deemed necessary to support efficiency in the national aviation industry amid global pressures.
On the same occasion, Coordinating Minister for Economic Affairs Airlangga Hartarto announced that domestic airfare prices will rise by 9 to 13 percent, driven by higher jet fuel costs. “To ensure domestic airfare increases remain affordable, the government is limiting the increase to between 9 and 13 percent,” Minister Airlangga said.
To curb the surge in ticket prices, the government has prepared measures, including covering 11 percent of the Value-Added Tax (VAT) on scheduled domestic economy-class flights. “Monthly, this amounts to IDR 2.6 trillion if prepared for two months, ensuring ticket price increases are capped at 9–13 percent,” Minister Airlangga explained.
He noted that the policy falls under the Non-Tax State Revenue (PNBP) scheme and is planned to last for two months. (Gusti Panji/Lasti Martina)
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