Oil Breaches US$100 per Barrel; Energy Ministry: No Plans to Raise Fuel Prices
Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has responded to the surge in global crude oil prices, which have once again breached the US$100 per barrel mark after previously falling to around US$86 per barrel.
The Director General of Oil and Gas at the ESDM ministry, Laode Sulaiman, stated that the government is currently monitoring the highly volatile movements in global oil prices. According to him, whilst crude prices had risen significantly, they subsequently declined following discussions between United States President Donald Trump and Russian President Vladimir Putin.
“If we look at it, prices were high earlier, then with talks between Trump and Putin they fell again. So we’re still paying attention to these dynamics, but the most important thing is that the government currently has no plans to raise prices,” Laode said at the Balongan Refinery Complex on Friday, 13 March 2026.
Previously, Energy and Mineral Resources Minister Bahlil Lahadalia urged the public not to engage in panic buying of fuel amid global uncertainty caused by conflicts in the Middle East. He assured that the government would ensure stable energy supply and that fuel and liquified petroleum gas (LPG) prices would not increase until after Eid al-Fitr.
“I urge my fellow citizens, there is no need for panic buying. Insya Allah, our fuel and LPG will be available,” Bahlil said during a podcast interview on Wednesday, 11 March 2026.
Bahlil revealed that the government had discussed the national energy situation during a limited meeting with the President, where it was decided that there would be no fuel price increases in the near term.
“And another thing, I just had a meeting with the President at the limited cabinet meeting, there will be no increase in fuel prices until Eid al-Fitr is over,” he stated.
The minister indicated that the government would increase subsidy allocations to prevent price rises. Given that the state budget assumed an Indonesian Crude Price (ICP) of US$70 per barrel, whilst current prices have reached approximately US$100 per barrel, the government would need to absorb the additional cost.
“In our state budget the ICP is US$70 per barrel, and now it has breached US$100 per barrel. We are still able to finance this difference, so the additional cost is still borne by the state,” Bahlil said.