Indonesian Political, Business & Finance News

Gibran Apologises to JK, Fuel Price Hike Proposal Not in Line with Prabowo's Directives

| | Source: KOMPAS Translated from Indonesian | Politics
Gibran Apologises to JK, Fuel Price Hike Proposal Not in Line with Prabowo's Directives
Image: KOMPAS

JAKARTA - Indonesia’s Vice President Gibran Rakabuming has apologised to the 10th and 12th Vice President of Indonesia, Jusuf Kalla, because the proposal to raise fuel prices does not align with President Prabowo Subianto’s directives.

Nevertheless, the government values and gives serious consideration to various inputs, including Kalla’s suggestion to increase fuel prices to ease the burden of energy subsidies.

“However, I must apologise as this does not align with President Prabowo’s clear and firm instructions to his team to maintain the stability of subsidised fuel prices so they remain affordable for low-income people,” Gibran said in his statement on Thursday (9/4/2026).

Gibran explained that the government is committed to carrying out efficiencies and focusing the budget on protecting the lower strata of society.

Additionally, according to Gibran, the acceleration of the transition to electric vehicles and renewable energy is also being promoted.

Gibran gave an example of President Prabowo, who just inaugurated the electric bus and truck vehicle factory of PT Vektor Sakti Industri (PT VKTR Teknologi Mobilitas Tbk), owned by the Bakrie Group, in Magelang, Central Java, on Thursday.

“Today, the President visited Magelang to inaugurate the Electric Vehicle Assembly Factory, as one form of the government’s seriousness,” he said.

The reason is that Kalla believes energy subsidies, particularly for fuel, will cause the state budget deficit to swell further and accumulate debt.

“We request that reducing the deficit and debt be considered by reducing subsidies. Because reducing subsidies means raising prices,” Jusuf Kalla said during an interview at his residence in South Jakarta on Sunday (5/4/2026).

Many countries have ultimately carried out savings to reduce the potential for a domestic energy crisis due to the war in the Middle East.

According to Kalla, if the government continues to maintain fuel subsidies and does not raise prices when global fuel prices soar, the government’s debt will become even larger.

Kalla views that an increase in debt is more dangerous in the long term, so Indonesians will eventually feel the impact.

He also gave an example that a fuel price increase would have a positive impact on people’s movement and lead to the savings desired by the government.

“So it’s a choice, this is a matter of choice. From my 20 years of experience, if explained well to the people, they will accept it. In 2005, 2014, there were no demonstrations because we explained it well. Especially this is an external matter. External means we are forced, forced because it’s from outside,” Kalla said.

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