Purbaya Denies Fuel Price Hike Speculation Ahead of Eid

6 hours ago 4

March 17, 2026 | 10:26 pm

TEMPO.CO, Jakarta – Finance Minister Purbaya Yudhi Sadewa said the government has no plans to raise fuel prices in the near term, despite mounting pressure on global energy markets caused by the escalating conflict in the Middle East.

Purbaya said Indonesia’s fiscal position remains strong enough to absorb volatility in global oil prices, allowing the government to keep domestic fuel prices stable.

According to him, the state budget (APBN) continues to serve as an effective shock absorber to protect household purchasing power, with sufficient funds still available to support the energy sector.

“As of now, there is no calculation to increase fuel prices because we still have enough budget to maintain current fuel prices,” Purbaya said in Yogyakarta on Tuesday, March 17, 2026.

He added that the government’s fiscal capacity remains strong enough to support fuel subsidies, even if President Prabowo Subianto decides to keep prices unchanged through the end of the year.

“If the situation remains like this, and if the President wants to maintain current prices until the end of the year, that is also possible. No problem,” he said. “The government still has substantial funds that can be used to keep fuel prices stable, even if some observers do not know where that money is.”

Purbaya’s remarks came as global crude prices remain under pressure amid the widening Middle East conflict, raising concerns over the potential impact on Indonesia’s energy subsidy burden.

Earlier, Energy and Mineral Resources Minister Bahlil Lahadalia also said the government would not raise subsidized fuel prices before Eid al-Fitr in 2026. He said subsidized fuels such as diesel and Pertalite would remain unchanged even after global crude oil prices climbed above US$100 per barrel.

“God willing, there will be no increase in subsidized fuel prices until Eid al-Fitr,” Bahlil said in Jakarta on Monday, March 9, 2026.

The government has also sought to reassure the public over domestic fuel security. Bahlil and Coordinating Economic Affairs Minister Airlangga Hartarto previously said Indonesia is preparing to diversify crude oil imports away from the Middle East to reduce supply risks amid regional tensions.

Read: Purbaya Backs Prabowo's Ministerial Salary Cut Plan

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