Malaysia Cuts Subsidised Fuel Quota, What About Indonesia? Here's What Bahlil Says
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has commented on the policy decision by neighbouring country Malaysia to cut the quota for subsidised fuel oil (BBM). Bahlil stated that the Indonesian government has no plans to adopt a similar policy in the near future.
Bahlil emphasised that the government is taking a cautious approach to decisions on energy subsidies to avoid burdening public purchasing power. He assured that the allocation and price of subsidised BBM domestically remain unchanged.
“President always instructs us to work thoroughly and carefully, considering the interests of our fellow citizens, the small people, and our society’s capabilities. Up to now, we have no option to limit subsidies. That means no increase in subsidies. It remains the same,” Bahlil said when met at the Office of the Coordinating Ministry for the Economy, Jakarta, on Friday (27/3/2026).
Regarding potential policy adjustments if geopolitical conditions and the global energy crisis persist long-term, Bahlil said the government will continue to monitor the situation. He acknowledged that the current energy market dynamics are changing very rapidly.
“We’ll see about that later. That’s why we follow these dynamics. They change very quickly. It could be per week, per month. The important thing for us is to ensure that the stock for all BBM is clear,” he added.
Although discussions on a scheme to limit subsidised BBM for better targeting are still in the formulation stage by the government, Bahlil stressed that the most important mitigation step now is public awareness itself.
Bahlil urged the public to be more efficient and not wasteful in consuming energy amid global uncertainties.
“That’s all still being formulated. But more importantly, how we use BBM wisely. We must be prudent in using BBM,” he concluded.
Malaysia cuts BBM quota
Malaysia’s Prime Minister Datuk Seri Anwar Ibrahim has just announced a strategic policy taken by the Malaysian Government to address the risks of the Middle East war’s impact on energy supplies in the country.
PM Anwar Ibrahim stated that the government will lower the quota for subsidised BBM of RON 95 petrol or Budi95 to 200 litres per month starting 1 April 2026.
Previously, the subsidised RON 95 petrol quota was set at 300 litres per month.
However, the price of subsidised RON 95 petrol remains unchanged at RM 1.99 per litre, equivalent to Rp 8,423 per litre (assuming Rp 4,232 per Malaysian Ringgit).
“All countries, especially neighbouring countries, are raising oil prices, but Malaysia has decided to maintain the Budi95 oil price at RM1.99. We know this has provided many benefits to the people and we also have to take some additional steps,” Anwar explained through an online broadcast, quoted from The Star, Thursday (26/3/2026).
“Therefore, we checked whether the use of Budi95 is sufficient. We found that the average use of Budi95 is around 100 litres,” he said.
“This means the majority of the people only use 100 litres per month, and nearly 90% of the people use less than 200 litres per month, so they will not be affected,” he said in a special speech broadcast live.