Government Assesses Impact of US-Iran Peace on Fuel Prices

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government is still assessing the impact of the peace agreement between the United States (US) and Iran on adjustments to fuel oil (BBM) prices, particularly non-subsidised fuels. Airlangga noted that the reopening of the Strait of Hormuz is one factor that will be considered in evaluating these price adjustments. “With the Strait of Hormuz reopening, we will see further price adjustments,” he said at the Presidential Palace Complex in Jakarta on Thursday. He added that the impact on fuel prices would not be automatic, as the government needs to observe the implementation of the peace agreement. “This is not automatic; we will also look at the implementation of the peace agreement,” he stated. Regarding the timeline for a potential decrease in non-subsidised fuel prices, Airlangga said it also depends on the ongoing distribution of oil supplies. “We will see where the goods are,” he remarked. Meanwhile, Minister of Investment and Downstreaming, who is also CEO of Danantara, Rosan Roeslani, stated that the government welcomes the US-Iran peace deal. The peace is expected to provide positive sentiment for the national economy. “We must be optimistic that our economy will perform well and progress, especially with the agreement between President Trump and the Iranian government. Oil prices have already fallen below 80 (US dollars per barrel), and hopefully, this will provide positive sentiment for our economy,” Rosan said after attending a briefing by President Prabowo Subianto for directors and commissioners of Himbara banks at the Presidential Palace in Jakarta on Thursday.