Stability of Fuel Prices Maintains Competitiveness of SMEs and Industry

REPUBLIKA.CO.ID, JAKARTA — The government’s decision to maintain subsidised fuel prices in 2026 is considered a pillar of production cost stability amid global pressures. This policy is believed to help preserve purchasing power while curbing surges in logistics and industrial costs.

Deputy Chairman of DPR RI Commission VI, Nurdin Halid, stated that energy price certainty provides space for business actors to compile more measurable business planning. “Energy price stability is key in maintaining logistics and production cost efficiency, thus keeping national industry competitiveness intact,” said Nurdin on Tuesday (7/4/2026).

According to him, the impact of this policy is not only felt by large industries but also by MSME actors who are vulnerable to fluctuations in input costs. With controlled fuel prices, cost pressures can be suppressed, allowing business actors to maintain margins and operational continuity.

However, Nurdin reminded that the effectiveness of subsidies greatly depends on targeting accuracy and distribution oversight. Without good control, the fiscal burden could increase and narrow the government’s policy space.

“Subsidies must be used wisely and on target. This is a social protection instrument, not for misuse,” he said.

He urged the government to strengthen oversight of subsidised fuel distribution to prevent leakages and ensure benefits reach the entitled groups. Policy consistency and governance are considered key to maintaining economic stability amid global uncertainties.

Previously, the government assured that subsidised fuel prices would not rise until the end of 2026. This policy was taken amid global energy price pressures, with the government preparing various scenarios to mitigate their impact on the domestic economy.