Rupiah Weakens Further as Deputy Energy Minister Confirms Subsidised Fuel Prices Unchanged Until Year-End

Deputy Energy Minister Yuliot Tanjung has addressed the issue of subsidized fuel prices, including Pertalite and Biosolar, amid the rupiah’s weakening against the US dollar. He reiterated that both diesel and Pertalite prices will not increase despite the dollar rate reaching Rp17,877 per dollar. “The increase in subsidized fuel prices has already been communicated—there will be no rise until the end of the year,” Tanjung stated at the Energy Ministry in Jakarta on Friday, 29 May 2026.

Beyond pricing, Tanjung confirmed that stock levels for these fuels are secure, exceeding the national minimum reserve requirement of 23 days. “Pertalite stocks are significantly above the minimum reserve, and so is CN48 diesel,” he said.

Meanwhile, supply of non-subsidized fuel is sufficient nationwide. Regarding the rupiah’s continued depreciation, Tanjung said the government is pushing for increased domestic oil production and preparing refineries. “We are encouraging domestic production increases and have prepared the refineries,” he added.

The rupiah has breached psychological thresholds around Rp17,700–17,800 per dollar. Despite the central bank raising the benchmark interest rate (BI-Rate) by 50 basis points to 5.25% to stabilise the currency, the dollar rate hit Rp17,877 per dollar on 29 May 2026, according to Bank Indonesia’s transaction rates.

Energy Minister Bahlil Lahadalia previously stated that despite the average Indonesian Crude Price (ICP) reaching $117.31 per barrel in April 2026, subsidized fuel prices remain stable. He cited the average ICP from January to now at around $80–81 per barrel, below the $100 threshold. “The average ICP is currently around $80–81 from January until now, so it hasn’t reached $100. Insha’Allah, it will stay stable until year-end,” he said.