Finance Minister Dismisses Fuel Price Increase Rumours Ahead of Eid
Finance Minister Purbaya Yudhi Sadewa has stated that the government has no plans to increase fuel prices in the near term, despite continued pressure from global markets affected by Middle East conflicts.
He explained that Indonesia’s current fiscal position possesses very strong buffers to absorb fluctuations in global energy prices.
According to Purbaya, the state budget (APBN) continues to function effectively as a shock absorber against various external pressures. The state’s cash reserves for the energy sector remain at very safe levels to protect public purchasing power.
“So far there are no calculations to raise fuel prices because we have a budget that is still sufficient to maintain current fuel price levels,” Purbaya said in Yogyakarta on Tuesday, 17 March 2026.
When asked about the extent of the APBN’s capacity to support energy sector needs, Purbaya stated it was more than adequate. He even indicated that if President Prabowo wished to maintain current fuel prices without increases until the end of the year, this would be possible.
“If the fuel requirement is at this level, and if the President wants to maintain prices until the end of the year, it’s also possible — there’s no problem,” he said. “So the government still has sufficient funds available for maintaining fuel prices, which observers don’t know where these funds are located.”
Previously, Energy and Mineral Resources Minister Bahlil Lahadalia also confirmed that there would be no subsidised fuel price increases until Eid al-Fitr 2026. He ensured that the prices of subsidised fuel types such as diesel and Pertalite would not rise, despite crude oil prices exceeding US$100 per barrel. “God willing, there will be no subsidised fuel price increases until Eid al-Fitr,” he said in Jakarta on Monday, 9 March 2026.
The government has also assured that domestic fuel stocks are secure, with Bahlil and Coordinating Minister for Economic Affairs Airlangga Hartarto previously noting that Indonesia would redirect crude oil import sources away from the West Asia region.