Price Held Firm: Subsidised Fuel Prices Will Not Rise, Says Finance Minister Purbaya

Jakarta – Finance Minister Purbaya Yudhi Sadewa has opted to continue holding the line on subsidised fuel (BBM) prices despite crude oil prices surging as a result of the Iran-US-Israel conflict.

According to Purbaya, the government currently has no plans to increase subsidised fuel prices, even though crude oil prices briefly breached $100 per barrel – exceeding the 2026 state budget assumption of approximately $70 per barrel.

Purbaya emphasised that the government’s strong fiscal resilience allows it to absorb rising crude oil prices within the state budget (APBN).

“No, we won’t raise fuel prices,” Purbaya stated after meeting with journalists at the Coordinating Ministry for Economic Affairs on Monday, 16 March 2026.

According to Purbaya, when global crude prices rise and are immediately transmitted to domestic fuel prices, this has the potential to slow economic growth and affect consumer purchasing power. Therefore, such cost increases will temporarily be absorbed by the APBN and the government.

The state treasurer regards Indonesia’s current fuel conditions as relatively stable despite fluctuations in global crude prices.

Purbaya assured that the government’s APBN possesses sufficient resilience to respond to crude oil price pressures. However, he was reluctant to specify how long this position could be sustained if crude prices remain above macroeconomic assumptions.

“In my view, we can hold the line indefinitely,” Purbaya asserted.

The surge in crude prices has been driven by disruptions to crude oil distribution through the Strait of Hormuz, which has also been affected by the Middle East conflict.

“Additionally, the President recently issued directives concerning the impact of the Iran-US-Israel conflict. These are aimed at accelerating fuel availability and implementing measures to reduce fuel consumption,” he added.