Finance Minister Purbaya Claims Rise in Non-Subsidised Fuel Prices Will Not Trigger Inflation

Finance Minister Purbaya Yudhi Sadewa stated that the increase in non-subsidised fuel (BBM) prices will not push inflation higher. According to him, inflation can still be controlled because the prices of subsidised BBM, which is widely used by lower-income communities and for logistics needs, are not being adjusted.

He said that the stability of subsidised BBM prices also helps dampen the potential for spikes in goods prices and preserves public purchasing power. “Cash management can drive the economy, and earlier when prices did not rise, especially subsidised BBM prices did not rise, inflation also did not rise, thus maintaining public purchasing power,” said Purbaya when met at his office in Central Jakarta on Tuesday, 21 April 2026.

Therefore, Finance Minister Purbaya urged that affluent groups should not receive stimulus for the non-subsidised BBM price increase. According to him, the policy is precisely to avoid swelling the subsidy burden, as that group is deemed capable of purchasing non-subsidised BBM.

Purbaya stated that hitherto, groups in social deciles 8–10 have also enjoyed a significant portion of energy subsidies, even though economically they are considered not to need them. He estimated that this group enjoys nearly 30 percent of the total subsidies provided by the government.

According to him, affluent communities will not object to bearing the non-subsidised BBM price increase because they are deemed to have adequate purchasing power.