The Ministry of Energy and Mineral Resources is currently discussing\nthe impact of the rupiah\u2019s weakening exchange rate on oil imports and\nfuel subsidies (BBM). Director General of Oil and Gas Laode Sulaeman\nstated that the government has not yet issued any new fiscal policies in\nresponse to the exchange rate pressures.<\/p>\n
\u201cSo, the Minister of ESDM (Bahlil Lahadalia) along with his team of\nministers is deliberating on this matter. We\u2019ll just wait and see how it\ndevelops,\u201d Laode said when met at the Ministry of ESDM on Wednesday, 13\nMay 2026.<\/p>\n
On the other hand, Laode assured that the national fuel reserves are\nstill in a safe condition, sufficient for 23 to 26 days. According to\nhim, Indonesia has not faced an energy crisis situation like that in\nseveral other countries.<\/p>\n
He assessed that this is evident from the high level of public\nactivity, including traffic jams on the roads. \u201cI still get stuck in\ntraffic every day, whereas in other countries people are already\nwalking. That means our energy reserves are still available,\u201d he\nsaid.<\/p>\n
Currently, Indonesia still imports around 1 million barrels of oil\nper day or about 20 million kilolitres of BBM per year. Imports are\nnecessary because domestic oil production is only around 605,000 to\n610,000 barrels per day, far below national consumption of 1.6 million\nbarrels per day.<\/p>\n
The large volume of imports has increased the energy subsidy burden\nin the 2026 state budget to Rp 210 trillion, up 14.24 per cent from the\n2024 realisation of Rp 183.9 trillion.<\/p>\n
Economist from Andalas University, Syafruddin Karimi, said that the\nrupiah\u2019s weakening will drive up the prices of imported goods and\ngradually trigger inflation.<\/p>\n
At yesterday\u2019s market close, the rupiah weakened to Rp 17,528 per US\ndollar, down 114 points from the previous day. According to Syafruddin,\nif the rupiah remains at the Rp 17,000 per US dollar level for a long\ntime, the pressure on people\u2019s living costs will become more\npronounced.<\/p>\n
\u201cPoor households and the middle class will bear the heaviest burden\nbecause their spending is concentrated on food, transportation, and\nroutine needs,\u201d said Syafruddin.<\/p>\n
This pressure is seen as even greater because global energy prices\nremain high. Brent crude oil prices were recorded at US$96.48 per\nbarrel, while West Texas Intermediate (WTI) reached US$98.72 per barrel.\nRising energy prices usually quickly spread to transportation and\ndistribution costs, then drive up prices of goods in traditional markets\nas well as modern retail.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ministry-of-energy-discusses-impact-of-rupiah-depreciation-on-fuel-subsidies-1778656134", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }