Bahlil States National Budget Still Strong Enough to Fund Subsidies as Oil Price Hits 100 US Dollars

JAKARTA — Energy and Mineral Resources Minister Bahlil Lahadalia has assured the government remains committed to sustaining energy subsidies despite global oil prices reaching 100 US dollars per barrel.

According to him, the national state budget and revenue (APBN) for this year remains capable of funding fuel subsidies when crude oil prices reach that level.

“If the price, should it remain at 100 dollars on average, God willing it is still within the APBN corridor. We can still manage it,” said Bahlil at the Energy and Mineral Resources Ministry in Jakarta on Tuesday, 17 March 2026.

Bahlil stated the government will continue careful planning to address fluctuations in global energy prices, including should significant spikes occur after March 2026.

“After March we will reconsider again. We are not God who can predict everything that happens there (Middle East). What matters is that we can undertake proper planning,” he said.

He emphasised the government’s strategy focuses not only on the short term but also encompasses medium to long-term horizons.

One key priority is ensuring energy availability remains secure domestically. According to Bahlil, the government is committed to maintaining energy stocks to prevent shortages in petrol, diesel, and liquefied petroleum gas.

“Regarding price, the state will continue to provide subsidies. It will continue to be present. The subsidy price level we will determine based on developments,” he said.

Furthermore, he assured national fuel stocks remain secure amidst escalating Middle East tensions. Fuel prices will not rise until the upcoming Eid celebrations.

Bahlil explained the application of national fuel prices consists of two schemes: subsidised and non-subsidised.

For subsidised fuel types, such as Pertalite and Biosolar, prices are guaranteed not to increase despite global crude oil price surges.

“I wish to state that until the completion of Eid, and hopefully afterwards as well, subsidised fuel remains under government control,” he said.

According to Bahlil, maintaining stable subsidised fuel prices represents the government’s effort to protect household purchasing power.

“The government has considerable concern for the public’s condition. We also do not wish to place all burdens upon the people,” he concluded.