Fuel Prices Remain Unchanged Despite Rise in Global Oil Prices, Government Prepares Additional Subsidies

JAKARTA, KOMPAS.com - Fuel oil (BBM) prices in Indonesia, both subsidised and non-subsidised, are not rising despite fluctuations in global oil prices.

The Indonesian government is committed to not increasing BBM prices amid geopolitical tensions involving the United States (US), Israel, and Iran in the Middle East, which have triggered rises in oil prices over the past few months.

State Secretary Minister (Mesnesneg) Prasetyo Hadi stated that the decision not to raise BBM prices as of April 2026 is a directive from President Prabowo Subianto to prioritise the interests of the people.

Furthermore, the Minister of Finance of the Republic of Indonesia, Purbaya Yudhi Sadewa, assured that subsidised fuel oil prices will not rise until the end of 2026.

He explained that the government has prepared various scenarios to mitigate the impact of rising global oil prices.

“So for the subsidised ones, it’s safe until the end of the year. So the public knows, no need to worry, no need to panic. We’ve calculated it,” he said during a working meeting with Commission XI of the DPR RI on Monday (6/4/2026).

The calculations were based on ranges of 80 US dollars, 90 US dollars, up to 100 US dollars per barrel.

Each scenario is accompanied by mitigation steps to maintain the stability of the State Revenue and Expenditure Budget (APBN).

The government’s policy of holding subsidised BBM prices is aimed at preserving public purchasing power. Thus, Purbaya hopes that household consumption will remain stable.

The subsidy burden could potentially increase if global oil prices continue to rise.

This situation increases Indonesia’s energy import costs.

To address this, the government has prepared a combination of fiscal and energy policies. This is intended to manage budgetary pressures without raising subsidised BBM prices.