Indonesia Guarantees No Hike in Subsidized Fuel Prices Until Year-End 2026

RRI.CO.ID, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa underscored the government’s fiscal resilience in the face of rising global oil prices, assuring that subsidized fuel prices will remain unchanged through the end of the year.

Speaking at a working meeting with Commission XI of the House of Representatives (DPR) in Jakarta on Monday, April 6, 2026, Purbaya said the government has prepared mitigation measures to safeguard the state budget (APBN) against oil price fluctuations, whether at USD 80 or USD 100 per barrel.

“We are ready not to raise subsidized fuel prices until year-end, assuming oil averages USD 100 per barrel. The subsidy allocation has been calculated and remains sufficient,” he explained, as quoted by Antara.

While subsidized fuel is protected, Purbaya noted that non-subsidized fuel prices cannot be guaranteed, as they are not covered by government price relief measures.

He emphasized that each USD 1 increase in global oil prices requires an additional IDR 6.8 trillion in subsidies. To manage this, the government is pursuing efficiency across ministries and agencies to keep the budget deficit at 2.92 percent without tapping into reserves.

Beyond the state budget (APBN), Purbaya highlighted other funding sources, including IDR 420 trillion (approx. USD 399 million) in excess budget balances (SAL), with IDR 200 trillion placed in banks. Additional revenue streams, such as non-tax state income (PNBP) from the energy and mineral resources sector, also serve as cushions.

“The important thing is that we have the funds. Our fiscal buffer remains intact, and the energy minister has promised higher revenues from rising global oil and coal prices,” he said.

The government is also working to cut inefficient spending and boost income from commodities, ensuring fiscal stability while maintaining subsidies for the public. ***