Rupiah Weakens; Global Oil Prices Rise, What Will Happen to Indonesia's Fuel Prices?
Jakarta, CNBC Indonesia – Finance Minister Purbaya Yudhi Sadewa assured that the trend of the rupiah’s weakness against the US dollar does not trigger higher prices for subsidised fuels. The government reiterated that the state budget remains in a secure position to support the national energy subsidy burden.
For reference, citing Refinitiv data, in trading on Tuesday (19 May 2026) at 13:18 WIB, the rupiah weakened 0.51% to Rp17,730 per US.Thisfollowedasharpsessioninwhichtherupiahcloseddown1.03.
Purbaya explained that the government has carried out fiscal risk simulations against currency fluctuations since the start of the year. He said the Anggaran Pendapatan dan Belanja Negara (APBN) instruments are currently strong enough to maintain energy price stability for the public.
“The budget has already been calculated beforehand,” he said after a Coordination Meeting at the Ministry of Energy and Mineral Resources (ESDM) in Jakarta, quoted on Wednesday (20 May 2026).
The government guarantees that there will be no policy to adjust the prices of petrol or diesel subsidised by the state in the near future. This is because the budget scenario prepared has anticipated the uncertainties of the global financial market.
“No (price increases),” Purbaya replied briefly when asked about potential changes to subsidised fuel prices.
In agreement with Purbaya, Energy and Mineral Resources Minister Bahlil Lahadalia also cited data on the realised average price of Indonesia’s crude oil (Indonesia Crude Price/ICP).
Bahlil noted that the cumulative ICP for the period remains below the government-set ceiling.
“Under President Prabowo’s directive, I have prepared for the ICP to average US$100 per barrel from January to date. It has fluctuated between US$80, US$90 and US$117; the current average is around US$80-81 from January to date. So not yet US$100 per barrel on average, and there has been no increase; God willing, subsidised fuel prices will not rise,” Bahlil said at the same event, quoted on Wednesday (20 May 2026).
The government is committed to maintaining subsidised prices at least until the end of 2026. Bahlil also rejected talk of plans to abolish fuel subsidies, and stressed that supply and funding for energy assistance for the public remains secure.
“God willing, subsidised fuel prices will hold until the end of 2026. There is no government plan like that (to abolish fuel subsidies). The budget is indeed sufficient,” he concluded.