Rupiah Nears Rp18,000 as Government Confirms Fuel Price Stability Until 2026
The rupiah’s weakening, nearing Rp18,000 per US dollar, has sparked concerns over fuel prices. However, the government has assured that subsidized fuel prices, including Pertalite and Biosolar, will remain stable and not increase until the end of 2026.
Deputy Energy and Mineral Resources Minister Yuliot stated that the government will maintain subsidized fuel prices despite the rupiah weakening to Rp17,877 against the US dollar. “Any increase in subsidized fuel prices has already been ruled out until the end of the year,” Yuliot said at the Energy and Mineral Resources Ministry in Jakarta on Friday.
In addition to ensuring stable prices, the government has confirmed that national fuel stocks remain above the minimum operational threshold. “For Pertalite, reserves are well above the minimum, and same for CN48 diesel,” Yuliot said.
He added that non-subsidized fuel supplies are also sufficient to meet national demand.
The rupiah’s decline comes amid rising global pressures pushing the US dollar higher against several currencies, including the rupiah. According to Bank Indonesia’s transaction rate, the rupiah briefly hit Rp17,877 per US dollar.
However, the government considers this situation insufficient grounds to adjust subsidized fuel prices.
Yuliot said the government is working to mitigate exchange rate pressures by boosting domestic oil production and strengthening domestic refining capacity. “We are pushing for increased domestic production, and our refineries are also ready,” he said.
Earlier, Energy and Mineral Resources Minister Bahlil Lahadalia also confirmed that subsidized fuel prices remain safe despite the Indonesian Crude Price (ICP) reaching $117.31 per barrel in April 2026.
Bahlil noted that the average ICP from January to May 2026 remains around $80-81 per barrel, well below the threshold that would trigger a subsidy price adjustment. “Our current average ICP is around $80-81 from January to now, so it’s still below $100,” Bahlil said.
Therefore, the government has assured that Pertalite and Biosolar prices will remain unchanged to protect public purchasing power amid global economic pressures and currency volatility. “Insha’Allah, until the end of the year,” Bahlil said.