Pertamax to Rise to Rp17,000? Here's the Government's Explanation on the Fuel Price Scheme

Energy and Mineral Resources Minister Bahlil Lahadalia stated that the mechanism for determining non-subsidised fuel (BBM) prices is fundamentally regulated by government rules and follows global energy market movements. This was conveyed by Bahlil after attending the Indonesia-Japan Business Forum in Tokyo on Monday, in response to discussions of a 10 per cent increase in non-subsidised BBM prices effective from 1 April 2026.

He explained that the 2022 Minister of Energy and Mineral Resources Regulation contains two fuel price formulations: one for the industrial sector and one for non-industrial.

“In the 2022 Minister of Energy and Mineral Resources Regulation, there are two formulations regarding BBM prices. One is for industrial BBM and one for non-industrial. For industrial, it happens continuously based on market prices even without announcement,” said Bahlil in a statement received in Jakarta on Tuesday (31/3/2026).

He explained that industrial category BBM generally consists of high-octane fuels, such as RON 95 and RON 98, used by affluent groups and business sectors.

Therefore, price changes do not burden the state as they receive no subsidies.

“RON 95 and 98 petrol is used by affluent groups. As long as they can pay, go ahead. The state’s duty is to provide for those who can pay; there is no state obligation at all,” he said.

Nevertheless, the government emphasised that the primary focus of energy policy remains protecting the public through subsidised BBM.

Bahlil assured that decisions regarding subsidised BBM prices are directly in the hands of President Prabowo Subianto, considering social conditions and public purchasing power.

“I say that subsidies depend on the date. Insha’Allah, I assure you that the President always considers and prioritises the people’s conditions in making policies,” added Bahlil.