Indonesian Govt Says No Increase in Subsidized Fuel Prices
Minister Bahlil says subsidized fuel prices will remain unchanged despite volatile global oil prices, while non-subsidized prices may fluctuate.
Indonesia's Energy and Mineral Resources Minister, Bahlil Lahadalia, has reassured citizens that subsidized fuel prices will not rise despite ongoing fluctuations in global oil prices. The minister stated that these fuel prices will not be adjusted based on the movements of the Indonesia Crude Price (ICP), which serves as the country's benchmark for crude oil prices. Instead, alterations in ICP would solely impact non-subsidized fuel prices.
Bahlil made these remarks following a meeting at the Finance Ministry in Jakarta on Tuesday, August 11, 2026. He emphasized the government's commitment to maintaining stable subsidized fuel prices, in line with the President's directive, even as global oil market developments continue to unfold.
Non-subsidized fuel prices, on the other hand, will continue to mirror international oil market trends. Pertamina, the government-owned energy company, and the state-owned entity are prepared to modify non-subsidized fuel prices in response to shifts in global oil prices. Bahlil added that if global prices decline, non-subsidized fuel prices could be adjusted downwards, and conversely, if prices rise, adjustments would be made upwards.
The Indonesia Crude Price for July 2026 was set at US$81.68 per barrel by the Energy and Mineral Resources Ministry, a decrease of US$1.77 from June's figure of US$83.45 per barrel. The ministry's director general of oil and gas, Laode Sulaeman, attributed this decline to the easing of geopolitical tensions in the Middle East and a gradual increase in global oil supplies. He stated that these factors contributed to the adjustment in the global crude oil market.
However, despite the drop in ICP, the minister's latest statement confirms that subsidized fuel prices will remain unchanged. While consumers of non-subsidized fuels will continue to face potential fluctuations in fuel prices due to global oil price movements, the government remains committed to maintaining stability in subsidized fuel prices.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
