Government Assures No Restrictions on Energy Subsidies Amid Global Pressures

REPUBLIKA.CO.ID, JAKARTA — The government has assured that it will not impose restrictions on energy subsidies, including for fuel oil (BBM), even as several countries begin adjusting their policies due to global pressures.

Energy and Mineral Resources Minister Bahlil Lahadalia emphasised that, to date, the government has no option to reduce subsidies or increase prices for subsidised BBM.

“Praise be to God, up to today, and I believe that the President always instructs us to work very carefully, taking into account the interests of our small people,” Bahlil stated at the Ministry of Finance office on Friday (27/3/2026).

He added that the current national energy policy still favours the purchasing power of the public, especially vulnerable groups.

“To date, we have no option to restrict subsidies. That means no increase in subsidies; it remains the same,” he stressed.

This statement also responds to actions by several countries, including Malaysia, which are beginning to cut energy subsidies amid global price dynamics and fiscal pressures.

According to Bahlil, the Indonesian government opts for a more cautious approach, considering the socio-economic conditions of the population. Amid ongoing global uncertainties, energy price stability is deemed crucial for maintaining domestic economic resilience.

Nevertheless, the government continues to monitor the global situation closely, including potential impacts from geopolitical conflicts on energy supplies and prices.

“What is important for us is to ensure that BBM stocks are all clear,” Bahlil said.

He also highlighted the importance of wise energy use by the public as part of collective efforts to maintain national energy resilience.