Bahlil Insists Subsidised Fuel and LPG Prices Will Not Rise Until 31 December

Jakarta, CNBC Indonesia - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has confirmed that the prices of subsidised fuels (BBM) and LPG will not increase until the end of 2026. This holds true even in the event of a surge in global crude oil prices.

He made this statement during a speech at the Business Forum of the IPB University Alumni Association on Saturday (2/5/2026).

“I promise all of you that until 31 December, even if the ICP reaches $100, insyaallah the prices of subsidised BBM and LPG will not rise,” Bahlil said at the event.

Nevertheless, Bahlil noted that the burden of energy subsidies remains very significant for the country. For instance, regarding LPG subsidies, since the kerosene-to-LPG conversion programme began in the 2006-2007 period, the subsidised LPG price has never been adjusted.

“That was during Pak SBY and Pak JK’s first term. Do you know? The subsidised LPG price from the very first time until now has never been changed,” Bahlil stated.

As a result, the burden borne by the government continues to rise. Currently, total LPG expenditure reaches around Rp137 trillion per year, with the subsidy portion borne by the state ranging from Rp80 to Rp87 trillion per year.

He also explained that the national LPG requirement currently stands at around 8.6 million tonnes per year. However, domestic production capacity is only 1.9 million tonnes.

From that capacity, the maximum production realisation is only in the range of 1.6 to 1.7 million tonnes per year. This means Indonesia still has to import around 7 million tonnes of LPG every year.

“Why do we import LPG? Because LPG’s raw materials are C3 and C4,” Bahlil said.