JK's Proposal to Raise Fuel Prices Faces Opposition from Volunteers

The government is committed to not raising the price of subsidised fuel during 2026. Former Vice President Jusuf Kalla has proposed that the government reduce fuel subsidies through price adjustments. According to him, the subsidy burden could potentially widen the state budget deficit, particularly amid the surge in global oil prices due to geopolitical conflicts. Kalla made this statement on Sunday (5/4) in South Jakarta. He assessed that the rise in global oil prices, triggered by tensions in the Middle East, needs to be anticipated through more adaptive fiscal policies. However, the proposal has received a response from the General Chairman of Bulungan Bergerak, Freeghard Timmy. He believes that policies related to subsidised fuel prices have undergone comprehensive government calculations, including fiscal aspects, community social conditions, and political impacts. “Raising fuel prices could potentially cause chain effects on the prices of essential needs, so it needs to be considered carefully,” Timmy said. He also assessed that the current government is striving to maintain a balance between economic stability and protecting people’s purchasing power amid global pressures. In that context, Timmy encourages that solutions for managing the state budget should not solely rely on reducing subsidies, but also through efficiencies in state spending across various sectors. Amid a global situation full of uncertainty, he emphasised the importance of maintaining national social and economic stability, as well as strengthening synergy between the government and various community elements. “The debate on fuel subsidies reflects the policy dilemma between maintaining fiscal health and protecting people’s purchasing power, especially in conditions where global energy prices remain volatile,” he concluded. The government’s assurance of not raising the price of subsidised fuel in 2026 serves as a strong signal in maintaining national economic stability. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the government is still discussing adjustments to the prices of general fuel types (JBU) or non-subsidised fuel. With cuts and savings here and there, he said, the government ensures the state budget deficit can be kept around 2.9%. Minister of Finance Purbaya Yudhi Sadewa assured that the price of subsidised fuel will not increase until the end of 2026. Minister of ESDM Bahlil Lahadalia confirmed that Pertalite and Solar prices will not rise despite the global energy crisis due to the intensifying US-Israel war against Iran. The government is preparing several measures to keep the rise in airfare prices within 9–13 percent amid increasing avtur prices. The government limits the purchase of subsidised fuel to a maximum of 50 litres per day for private vehicles. Bahlil explained the reasons and who is affected. The issue of fuel price increases has resurfaced after a decree on limiting Pertalite and solar purchases circulated. BPH Migas asked the public to wait for the official government decision.