Bahlil: Non-Subsidised Fuel Prices Automatically Follow Market Mechanism

JAKARTA - The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has responded to discussions about a potential increase in non-subsidised fuel prices starting 1 April 2026, which economists estimate could rise by up to 10 per cent.

He explained that the mechanism for setting fuel prices in Indonesia is regulated under Ministerial Decree Number 245.K/MG.01/MEM.M/2022.

This regulation outlines two pricing schemes: one for non-subsidised fuel and another for subsidised fuel.

“For industrial [non-subsidised fuel], even without an announcement, it continuously follows market prices. So, whether announced or not, it will follow market prices,” he stated, quoted from the Presidential Secretariat’s YouTube channel on Tuesday (31/3/2026).

He detailed that non-subsidised fuels include high-octane petrol such as Pertamax (RON 95) and Pertamax Turbo (RON 98).

Bahlil stressed that this type of fuel is intended for affluent segments of society.

“So that’s for people who can afford it. And as long as they want to use it a lot, as long as they have the money to pay, go ahead. The state’s duty is to provide it; they pay for it, there’s no burden on the state at all,” he said.

Therefore, Bahlil continued, the government’s primary focus remains on subsidised fuel policies.

According to him, domestic fuel prices are currently stable despite global oil price fluctuations that have reached $115 per barrel.

“I think the President has a heart for paying attention to the little people. Believe me, wait for the decisive date; the President will decide what’s best for the people, the nation, and the country,” he added.