Fuel Prices Unchanged, Finance Minister Purbaya Increases Fuel Subsidy Budget to Up to Rp 100 Trillion

Finance Minister Purbaya Yudhi Sadewa stated that the government will increase the fuel subsidy budget by Rp 90 trillion to Rp 100 trillion. According to Purbaya, this step is taken to maintain domestic fuel prices and prevent increases amid the surge in global crude oil prices due to conflicts in the Middle East. “Rp 90-100 trillion, that’s the subsidy, there are other compensations too. We’ll calculate again later, I forgot the exact figure,” Purbaya told reporters at Wisma Danantara on Wednesday (1/4/2026). However, he emphasised that the figure is still provisional and will be recalculated. Additionally, the additional budget only covers the subsidy component and does not include compensation. Purbaya added that the government currently has sufficient fiscal room to cushion the impact of rising global oil prices. In fact, according to him, the government is still able to keep domestic fuel prices stable even as global oil prices remain high. He explained that assuming an average global oil price of $100 per barrel throughout the year, Indonesia’s fiscal condition remains relatively safe. Moreover, current oil prices are still below that assumption. With this situation, the government’s fiscal space is deemed sufficiently open. Purbaya also assured that despite the additional subsidies, the budget deficit can still be kept below safe limits. The government, he said, has locked the budget deficit at around 2.9%, even with the assumption of oil prices at $100 per barrel. “We’ve calculated everything. Even with an average of $100, the deficit remains below 3%, around 2.9%, so no problem,” he said. Meanwhile, PT Pertamina (Persero) through Pertamina Patra Niaga has officially announced the fuel prices for 1 April 2026 applicable at petrol stations across Indonesia. Referring to the April 2026 fuel prices, all types of non-subsidised and subsidised fuels have not undergone adjustments, both the Pertamax Series and Dex Series. This means the latest fuel prices remain the same as those currently in effect.