Commission XI Chair Requests Fuel Price Increase as Last Resort Option

Jakarta — The head of Commission XI of the Indonesian House of Representatives, Muhammad Misbakhun, has urged the government to treat a fuel price increase as an absolute last resort.

Global crude oil prices have surged due to tensions between Israel, the United States, and Iran, which have impacted the closure of the Strait of Hormuz.

“I would request that this option be the absolute last resort. Not the final option, but the most final option. The most final,” said Misbakhun when met at the Parliamentary Complex in Senayan, Jakarta, on Tuesday, 10 March 2026.

The oil price rise exceeds the assumptions for crude oil purchases specified in the State Budget (APBN). This situation has forced the government to choose between raising subsidised fuel prices or maintaining current prices despite budgetary strain.

Misbakhun stated that an increase in subsidised fuel prices would trigger inflation and risks such as rising prices of basic necessities.

“Of course this also creates what risks? Inflation if fuel prices are raised, then basic goods prices in transportation will certainly rise. Definitely,” said Misbakhun.

“Food prices will also rise because production costs will increase,” he added.

The government wants to maintain the public’s purchasing power since household consumption contributes the largest share to Gross Domestic Product (GDP).

“If public purchasing power is affected, then it will affect our level of economic growth,” said Misbakhun.