Airlangga and Luhut Cite Rising CPO and Nickel Prices as Compensation for Expensive Oil

JAKARTA — The Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that rising prices for various export commodities could serve as compensation for Indonesia’s soaring crude oil purchases.

Airlangga made the statement to President Prabowo Subianto during a Full Cabinet Session at the State Palace on Friday, 13 March 2026.

Airlangga noted that rising global oil prices resulting from the conflict between Iran, Israel, and the United States would also enable Indonesia to realise windfall gains from Non-Tax State Revenue (PNBP).

“We then have the potential to obtain windfalls from Non-Tax State Revenue for oil and gas (PNBP migas) and commodities,” Airlangga said.

“We can, in effect, impose additional taxes on these commodities,” he added.

However, Airlangga did not specify the exact amount of the additional tax in question.

He only mentioned that proposals to impose additional taxes on various commodities would be regulated through a Government Regulation in Lieu of Law (Perppu) currently being prepared.

“We are preparing the timing; naturally, this is a political decision for the President. However, this is the content of the Perppu we previously prepared during the Covid period, which we have adapted differently,” Airlangga said.

Through the Perppu, the government would also be able to alter budget allocations across programmes, issue State Securities (SBN), eliminate import duties, and provide exemptions for certain raw materials to ensure exports continue, as well as adjust arrangements for corporate income tax (PPh) and value-added tax (PPN) revenue in emergency conditions.

“With this Perppu, we can make these changes without the legislature. The government gains direct flexibility to make adjustments,” Airlangga said.