Finance Minister Has No Plans to Raise Subsidised Fuel Prices Despite Oil Price Surge
Jakarta — Finance Minister Purbaya Yudhi Sadewa announced that the government currently has no plans to raise subsidised fuel prices amid surging global oil prices caused by the conflict between the United States and Israel versus Iran.
“As of now, there is no policy to change fuel subsidy arrangements, meaning raising fuel prices,” Purbaya told journalists in Jakarta on Monday.
The minister stated that domestic oil supply remains sufficiently secure, in line with statements from Energy and Mineral Resources Minister Bahlil Lahadalia.
Purbaya noted that the average global oil price trajectory remains below the maximum capacity of the State Budget (APBN). This means, according to the finance minister, the national budget remains adequate to absorb the impact of oil price volatility.
Nevertheless, he committed to monitoring developments over the coming month and making decisions when necessary.
“It is not yet time to make a decision, as we still have sufficient funds,” he added.
The state treasurer urged the public to remain calm and trust government policy in navigating global turbulence. Indonesia has previously experienced oil price spikes, he noted.
“Let us see what the situation is like. After a month, we will forecast oil prices so that we can make appropriate policy decisions. Trust me on this—I am quite capable. We have experienced high oil prices several times before, and the country did not collapse. Why? Because the policy was appropriate,” he said.
In a separate statement, Bahlil confirmed that fuel supply remained reliable to meet public demand during the fasting period and Eid al-Fitr. He also guaranteed that the price of subsidised fuel, Pertalite, would not increase despite global crude oil prices reaching 118 US dollars per barrel.
According to Sputnik, Brent crude reached 118 US dollars per barrel for the first time since 17 June 2022.
This price is higher compared with the average oil price in January 2026, where Brent (ICE) stood at 64 US dollars per barrel and US WTI at 57.87 US dollars per barrel.