Indonesia to Keep Subsidized Fuel Prices Unchanged Through December 31
Indonesia will hold subsidized fuel prices steady through the end of 2026 despite rising global oil prices, Energy Minister Bahlil Lahadalia said on November 7. He also said the government would continue subsidies, including for LPG.
Price freeze amid higher oil costs
Bahlil announced the commitment at the inauguration of the Golkar Party's Maluku Chapter on Saturday, in remarks broadcast on the Kabar Golkar YouTube channel. He said President Prabowo Subianto had directed him to develop an energy policy that would avoid placing too heavy a burden on people eligible for subsidies.
"Regardless of the prices, the subsidized fuel price will remain the same until December 31, 2026," Bahlil said.
He put global oil prices at more than Rp20,000 per liter and said the war in the Middle East was disrupting fuel sectors in many countries amid broader geopolitical uncertainty.
For context, subsidized retail prices in September were Rp10,000 per liter for Pertalite, a RON 90 gasoline, and Rp6,800 per liter for Solar diesel, according to ANTARA News and Jakarta Globe. Those prices had not changed from earlier in the year.
Oil prices and supply sources
The Indonesian Crude Price, or ICP, was between $106 and $108 per barrel in September, compared with the $70 assumption used in the 2026 state budget, according to Bahlil's figures reported by ANTARA News. He put the January-September average at $85 to $90 per barrel.
Indonesia was also looking outside the Middle East for crude supplies in September as tensions continued in the region, Jakarta Globe reported. Bahlil said the search included African producers such as Angola, while supplies had already been secured from several countries, including Russia.
Subsidy spending and eligibility
Energy subsidy and compensation payments totaled Rp376.8 trillion through September, Finance Minister Suahasil Nazara announced on October 9. The amount was 54.1% higher than a year earlier and represented 84.3% of the 2026 state budget target.
Separately, figures cited by the Energy Ministry in September listed Rp210.1 trillion in energy subsidy allocations for 2026 and Rp381.3 trillion for the combined energy subsidy and compensation package.
The government was also working to narrow access to subsidized Pertalite. As of September, it was finalizing data validation for restrictions on consumption by households in the top two income deciles, with the aim of better targeting the subsidy, ANTARA News reported.
Additional kerosene planned for Maluku
At Saturday's event, Bahlil also pledged additional kerosene quotas for Maluku to help prevent shortages around Christmas 2026 and New Year 2027.
He said he had asked BPH Migas, which operates under the Energy Ministry, to increase the province's quota ahead of those holidays and during the fasting month.