Fuel Prices Not Increasing, Purbaya: Pertamina Bears It Temporarily

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has revealed that fuel prices in Indonesia, which are being held steady amid volatile global crude oil prices, will not drain the 2026 state budget’s subsidies and energy compensations. He stated that, for the time being, the unchanged fuel prices are entirely borne by PT Pertamina (Persero). “For now, it seems Pertamina is handling it temporarily,” said Purbaya when met at Wisma Danantara, Jakarta, on Wednesday (1/4/2026). Purbaya explained that Pertamina’s liquidity now has more room to face oil price pressures because the government has been paying subsidy and compensation arrears more promptly. “It is able because now the government’s payments are smooth, and we pay the compensation 70% every month continuously,” Purbaya revealed. “So Pertamina’s finances are very good, absorbing it for a short period is no problem,” he emphasised. Nevertheless, Purbaya acknowledged that ultimately, the government’s budget will be drawn upon to meet subsidy and compensation payment needs. However, he assured that this would not cause the state budget deficit to balloon beyond the safe limit of 3% of GDP under the State Finance Law. “From 2.68% of GDP to 2.9%, that’s an addition of 0.12%, not too significant,” Purbaya said.