Prabowo Orders No Increase in Subsidised Fuel Prices, Non-Subsidised to Follow Global Crude

President Prabowo Subianto has affirmed the government’s commitment to keeping subsidised fuel prices stable amidst fluctuations in global oil prices. For non-subsidised fuel, Prabowo requested that price adjustments follow market mechanisms if global crude oil prices decline. The directive was delivered during a limited meeting with several ministers, including Minister of Energy and Mineral Resources Bahlil Lahadalia, at the Presidential Palace Complex in Central Jakarta on Tuesday, 4 August 2026. “The President’s directive is to maintain subsidised fuel prices without any increase, but if the Indonesian Crude Price (ICP) falls, we should consider adjusting non-subsidised fuel prices to follow the market. If it goes down, it goes down; do not raise it. That is the gist of it,” Bahlil told reporters. The policy underscores the government’s approach of differentiating treatment between subsidised and non-subsidised fuel. Subsidised fuel is prioritised to remain stable to safeguard public purchasing power, while non-subsidised fuel follows the dynamics of global energy prices. Beyond fuel pricing policy, the meeting also highlighted the acceleration of downstreaming programmes in the mining sector as a strategic government agenda. Bahlil reported on the progress of former Coal Mining Contract of Work companies that have obtained licence extensions into Special Mining Business Permits (IUPK). He stated that these companies are required to implement downstreaming programmes as a consequence of the licence extensions granted by the government. Bahlil stressed that President Prabowo demands all IUPK holders comply with these provisions, and the government will not hesitate to take action against any company neglecting its downstreaming obligations. “The President’s directive must be strictly implemented according to the rules, and if any party fails to comply, measured steps will be taken immediately to enforce compliance in accordance with Article 33 of the 1945 Constitution,” he said.