Indonesian Political, Business & Finance News

Here Are the Requirements for the Special Diesel Price

| Source: CNBC Translated from Indonesian | Economy
Here Are the Requirements for the Special Diesel Price
Image: CNBC

President of the Republic of Indonesia Prabowo Subianto has instructed the provision of a special diesel fuel price of Rp15,000 per litre for fishing business operators. The decision was made at a Limited Meeting held at the Hambalang residence in Bogor on Monday (13/7/2026).

Minister of Energy and Mineral Resources Bahlil Lahadalia explained that the special price of Rp15,000 per litre is intended for fishing vessels measuring 30-200 GT. The policy aims to help reduce operational costs and increase productivity in support of the sustainability of the national fisheries industry.

“This policy, decided at the limited meeting in Hambalang on 13 July 2026, is funded through the Palm Oil Plantation Fund Management Agency (BPDP) without using the state budget, with a quota of 400,000 tonnes for the next six months,” Bahlil explained in an Instagram post on @melangkahdaritimur, quoted on Saturday (18/7/2026).

Under this policy, the Ministry of Energy and Mineral Resources will issue implementing regulations, while distribution will be coordinated with the Ministry of Marine Affairs and Fisheries to ensure it reaches the right targets, thereby strengthening food security, the maritime economy, and the welfare of Indonesian fishermen.

In addition, Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the non-subsidised fuel price had surged to Rp21,300 per litre. Meanwhile, fishermen with vessels under 30 GT already receive subsidised fuel at Rp6,800 per litre.

Therefore, Airlangga continued, the President directed that fishing businesses operating vessels of 30-200 GT be given a special fuel price.

“Because these fishing businesses need to be given a special price, it was discussed earlier that the agreed price is Rp15,000 per litre,” Airlangga said, quoted from an official statement by the Presidential Secretariat on Monday (13/7/2026).

Airlangga explained that the non-subsidised fuel price is set based on the average domestic production cost of diesel, which is Rp18,600 per litre. This means that with the special price of Rp15,000 per litre, the government is providing a subsidy of Rp3,600 per litre.

He also explained that the price difference will not be covered by the State Budget (APBN), but by the Palm Oil Plantation Fund Management Agency (BPDP).

“Why is it funded by BPDP? Because BPDP currently has sufficient funds to finance this, rather than the APBN, because the price of oil, diesel, and biodiesel are now close,” Airlangga said.

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