Finance Minister Confident Non-Subsidised Fuel Price Hike Will Not Trigger Inflation Surge, Here's Why

Jakarta – Finance Minister Purbaya Yudhi Sadewa has assured that the increase in non-subsidised fuel prices will not trigger a surge in inflation. This is because the government is still maintaining subsidised fuel prices to control inflation.

Purbaya acknowledged this strategy as a means to safeguard the public’s purchasing power while promoting economic growth through improved budget management.

“Now (the fuel price) is rising, but only for the non-subsidised type. The subsidised one isn’t rising, so inflation can be controlled,” said Purbaya during a press conference at the Ministry of Finance in Jakarta on Tuesday, 21 April 2026.

He emphasised that more affluent groups in society should indeed pay higher fuel prices. This is because those in deciles 8, 9, and 10 have actually been enjoying nearly 30 percent of the total fuel subsidies provided by the government.

“The wealthy can just (use non-subsidised fuel). If we calculate from various other subsidies, they’ve already enjoyed too much. So they should (pay more). Because subsidies are meant for the lower-income people,” he stated.

When asked about the potential shift of consumers to subsidised fuel, Purbaya considered it technically under the purview of the Ministry of Energy and Mineral Resources.

Moreover, the Ministry of Energy and Mineral Resources has already implemented programmes to limit the purchase of subsidised fuel for certain vehicles, based on engine capacity or CC.

Purbaya did not deny that some minor leakages in the field would still occur. However, if those leakages are not massive, the government can at least control them.

“I assume there will definitely be some minor leakages. But as long as it can be controlled, it’s fine. As long as it’s not too large, I think it can be managed,” he said.