Oil Prices Rise, Rupiah Weakens, Bahlil Asserts Subsidised Fuel Prices Will Remain Unchanged
The Minister of Energy and Mineral Resources (ESDM), Bahlateral Lahadalia, has ensured that the government will not raise the price of subsidised fuel (BBM), despite pressures from global crude oil prices and the Rupiah exchange rate. The government assesses that the current situation remains controllable, allowing energy subsidies to be maintained.
Bahlil stated that he received direct instructions from President Prabowo Subianto to keep the average Indonesian Crude Price (ICP) at a safe level. According to him, Indonesia’s average ICP since the beginning of the year has remained below the $100 per barrel threshold.
“Our average ICP is currently around 80 to 81 US dollars. It has not reached 100 US dollars. There has been no increase, and we will not increase the fuel subsidy, God willing,” the Minister of Energy said in Jakarta on Tuesday.
He assessed that fluctuations in global oil prices still provide enough room for the government to maintain its energy subsidy policy. The government continues to monitor developments in the global oil market, which has been moving dynamically in recent months.
On the same occasion, Bahlil mentioned discussions regarding the import of compressed natural gas (CNG) cylinders, which are still in the testing phase. The government is reportedly still evaluating this scheme before making further decisions.
He also revealed that the government is preparing a consolidation of mineral exports to support the national downstreaming programme. According to the Minister, mineral processing industries, such as smelters, require certainty regarding raw material supplies to ensure that investment continues. Commodities such as bauxite and nickel are identified as the primary focus for synchronising the needs of the downstream industry. Furthermore, the government has signalled that the formation of a mineral agency will soon be realised to strengthen the consolidation of the national mineral sector.