Government Pauses Subsidised Fuel Price Decision Despite Global Oil Surge Above USD 100 Per Barrel

The Finance Minister Purbaya Yudhi Sadewa has revealed that there are currently no plans to raise the price of subsidised fuel or petroleum products (BBM), despite global oil prices reaching above USD 100 per barrel.

According to Purbaya, domestic oil supplies remain sufficiently secure. “At present, there is no policy to change BBM subsidies, in the sense of raising fuel prices,” he stated in Jakarta on Monday 9 March.

He emphasised that the State Budget (APBN) capacity remains adequately secure to respond to the surge in global oil prices. The APBN is still able to withstand the impact of oil price volatility.

Nevertheless, Purbaya acknowledged that the government would monitor global oil price developments over the next month, after which the government would make a decision. “There is no decision yet; we still have sufficient funds,” he said.

According to him, Indonesia has previously faced surges in global oil prices. The policies implemented at that time, he noted, managed to control domestic oil prices. “After a month, we will forecast what oil prices will look like so we can take the appropriate policy,” he added.

Meanwhile, the Minister of Energy and Mineral Resources Bahlil Lahadalia stated that subsidised fuel prices, particularly Pertalite, will not increase even though global oil prices have reached 118 US dollars per barrel.