The Indonesian Ministry of Energy and Mineral Resources (ESDM) has officially assured the public that the prices of subsidized fuels, including Pertalite and Biosolar, will remain unchanged through the end of the year. This guarantee stands firm despite the recent fluctuations in the exchange rate, which has reached Rp 17,877 per US dollar.
Deputy Minister of Energy and Mineral Resources, Yuliot, confirmed this policy during a briefing at the ministry’s office in Jakarta on Friday (May 29). He emphasized that the government is committed to maintaining price stability for subsidized fuel products, shielding consumers from the volatility currently impacting the national currency.
Beyond price stability, the Ministry underscored that national fuel stocks are currently secure and well above minimum reserve requirements. While the national operational standard for fuel reserves is set at 23 days, current supplies for both Pertalite and Solar CN48 are significantly higher. Yuliot further noted that the availability of non-subsidized fuel across the country remains stable and sufficient to meet demand.
In response to the weakening rupiah, which has breached the psychological barrier of Rp 17,700 to Rp 17,800 per US dollar, the government is focusing on long-term energy independence. Yuliot explained that the state is actively working to boost domestic oil production and is preparing regional refineries to reduce reliance on imports. This move comes as the Bank Indonesia (BI) benchmark rate was recently hiked by 50 basis points to 5.25% in an effort to stabilize the rupiah.
Despite these economic pressures, Minister of Energy and Mineral Resources Bahlil Lahadalia highlighted that the situation remains under control. While the Indonesian Crude Price (ICP) hit US$ 117.31 per barrel in April 2026, the average ICP from January to date remains well below the critical US$ 100 threshold, hovering between US$ 80 and US$ 81 per barrel.
Given these figures, Minister Bahlil reiterated his confidence in the current energy policy. He confirmed that subsidized fuel prices are expected to remain stable throughout 2026, providing a necessary buffer for the national economy against international market instability.
Summary
The Indonesian Ministry of Energy and Mineral Resources has confirmed that prices for subsidized fuels, such as Pertalite and Biosolar, will remain unchanged through the end of the year. This decision holds firm despite the Indonesian rupiah weakening to approximately Rp 17,877 per US dollar. The government aims to protect consumers from economic volatility and ensure price stability across the country.
National fuel reserves currently remain well above the 23-day requirement, ensuring a secure supply for the public. To reduce dependency on imports and address long-term energy concerns, the government is focusing on increasing domestic oil production and improving refinery capacity. Officials believe the current strategy will effectively buffer the national economy against international market pressures throughout 2026.
