Global Oil Prices Surpass US$108 per Barrel, Bahlil Responds
The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has addressed the surge in global oil prices, which have reached US$108 per barrel. Bahlil emphasised that his ministry is continuously consulting with the Minister of Finance, following directives from President Prabowo Subianto, to monitor global energy price dynamics.
Despite the recent spike in global crude prices, records show that the average Indonesian Crude Price (ICP) from January to September has remained within the range of US$85 to US$90 per barrel.
“But now, even though the current price has reached US$106 to US$108 per barrel, the average ICP from January to September is approximately US$85 to US$90. So, overall, it is still fine,” he explained when met at the Ministry of ESDM Office in Jakarta on Friday (11/9/2026).
He ensured that the price of subsidised fuel (BBM) will not undergo any increase. “However, the government has decided as of today to maintain the price of subsidised oil without any increase,” he added.
The decision to maintain subsidised fuel prices will inevitably lead to an increase in the energy subsidy budget. Nevertheless, the government is prioritising the protection of the purchasing power of lower and middle-class communities.
“This is indeed something heavy. Why? Because it will certainly increase the subsidy burden. However, President Prabowo believes that defending and maintaining the purchasing power of the lower and middle classes is far more important,” he concluded.
ICP July 2026
The Ministry of ESDM released the Indonesian Crude Price (ICP) at a level of US$89.43 per barrel for August 2026. This represents an increase compared to the July ICP, which was only US$81.68 per barrel. The determination of the average ICP is stipulated in the Decree of the Minister of Energy and Mineral Resources (ESDM) Number 352.K/MG.03/MEM.M/2026.
This rise in oil prices is occurring amidst increasing geopolitical risks and concerns regarding supply disruptions in international oil distribution routes. The government is currently monitoring market developments ahead of the September price realisation, focusing on national energy security and the accountability of ICP management.
The Director General of Oil and Gas, Laode Sulaeman, stated that the average ICP for August 2026 rose to US$89.43 per barrel due to global market dynamics influenced by high geopolitical risks and potential supply disruptions in crucial routes.
“Various tensions in the Strait of Hormuz and the Red Sea, including attacks on tankers and refinery facilities, have triggered market concerns regarding the smoothness of the global oil supply,” Laode said in a press release on Friday (11/9/2026).
The government noted that the increase in ICP aligns with the rise in major crude oil prices in the international market during August 2026. In addition to concerns over maritime route disruptions, tightening political-economic sanctions and international diplomatic deadlocks are cited as factors limiting the opportunity for global oil prices to decline.
The increase in crude oil prices in August 2026 compared to July 2026 is recorded as follows:
Indonesia ICP: from US$81.68 to US$89.43 per barrel, an increase of US$7.75.
Brent (ICE): from US$83.97 to US$88.08 per barrel, an increase of US$4.10.
WTI (Nymex): from US$79.22 to US$82.45 per barrel, an increase of US$3.23.
Dated Brent: from US$83.41 to US$90.84 per barrel, an increase of US$7.43.
Entering September 2026, the ICP is projected to remain at a high level, in the range of US$83.00 to US$87.00 per barrel. This projection is linked to supply constraints in the Strait of Hormuz and the anticipated decline in oil reserves in the United States.
The government stated it will continue to monitor global crude oil price movements as part of its efforts to maintain national energy security. The government also stated that the ICP formula remains transparent and reflects international market dynamics to ensure accountability for state finances and the upstream oil and gas industry.