Jakarta (ANTARA) - The government will not raise subsidized fuel prices despite a surge in Indonesia’s crude oil benchmark to US$112.81 per barrel in September, Deputy Finance Minister Juda Agung said.
Speaking at the Prasasti Indonesia Policy Forum 2026 in Jakarta on Tuesday, Agung said the government would recalculate key economic assumptions to assess the potential impact of higher global oil prices.
He assured the public that the government would neither raise subsidized fuel prices nor widen the budget deficit in response to the emerging economic risks.
Instead, the government would retarget fuel subsidies to ensure they reach eligible recipients, he said.
The Energy and Mineral Resources Ministry said Monday that the Indonesian Crude Price (ICP) averaged US$112.81 per barrel in September, up US$23.38 from US$89.43 in August.
"The increase reflects global oil market dynamics shaped by geopolitical uncertainty and rising supply disruption risks. Prices have also increased across all international benchmarks," Oil and Gas Director General Laode Sulaiman said Monday, October 12.
Energy Minister Bahlil Lahadalia had previously assured the public that subsidized fuel prices would remain stable despite higher global oil prices, citing the government's commitment to protecting purchasing power.
"President Prabowo Subianto believes protecting the purchasing power of low- and middle-income groups is more important," Bahlil said on September 11.
Five days later, Bahlil said the ministry was drafting regulations to restrict the distribution of subsidized fuels, including Pertalite gasoline and Biosolar diesel, to ensure subsidies reach eligible recipients.
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Translator: Bayu Saputra, Tegar Nurfitra
Editor: Rahmad Nasution
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