Industry Minister Calls for Crackdown on Subsidised Fuel Misuse, Industry Not the Source of the Problem

JAKARTA - The Minister of Industry, Agus Gumiwang Kartasasmita, has stressed that any potential misuse of subsidised fuel oil must be firmly addressed. The oversight of subsidised fuel distribution falls under the responsibility of law enforcement authorities, with the aim of ensuring targeted delivery. Agus explained that the industrial sector no longer receives subsidised fuel, and the risk of deviations in this sector is considered relatively low. Industrial energy needs, particularly for diesel, are well-recorded, and the pricing scheme used is market-based. “Actually, there is no fuel subsidy for industry. So, when it comes to oversight to prevent misuse, we leave it entirely to law enforcement,” Agus stated in Jakarta on Tuesday (21/4/2026). Geopolitical tensions in the Middle East are also driving price fluctuations, with the closure of the Strait of Hormuz being a key factor. “All non-subsidised fuels are priced based on the market. We understand that situations like the closure of the Strait of Hormuz and ongoing conflicts will certainly trigger fluctuations and push fuel prices higher,” he explained. Agus hopes that the price pressures will not last long, believing that global stability will help lower prices. “We hope this is only temporary. If the global situation improves, non-subsidised fuel prices will also adjust accordingly,” Agus asserted. Data from PT Pertamina Patra Niaga shows the sharpest spikes in Dexlite and Pertamina Dex, both rising by up to Rp 9,400 per litre compared to early April 2026. The price of Pertamina Dex in DKI Jakarta now stands at Rp 23,900 per litre, up from Rp 14,500 previously. Dexlite has risen to Rp 23,600 per litre from Rp 14,200, while Pertamax Turbo has increased to Rp 19,400 per litre from Rp 13,100. This rise reinforces the ongoing upward trend in non-subsidised fuel prices amid global pressures.