The Ministry of Energy and Mineral Resources (ESDM) has officially guaranteed that prices for subsidized fuel—specifically Pertalite and Biosolar—will remain unchanged throughout the end of the year. This assurance comes despite the recent depreciation of the rupiah, which has reached a level of IDR 17,877 per US dollar.
Deputy Minister of Energy and Mineral Resources Yuliot confirmed the government’s stance during a meeting at the Ministry’s office in Jakarta on Friday (May 29). He reiterated that there are no plans to increase subsidized fuel prices for the remainder of the year.
Beyond price stability, the Ministry emphasized that the nation’s fuel supply remains secure, with stock levels currently exceeding the required operational minimum. While the national standard for operational reserves is set at 23 days, Yuliot noted that both Pertalite and Solar CN48 stocks are significantly higher than the mandated threshold. He also confirmed that the nationwide availability of non-subsidized fuel remains sufficient to meet consumer demand.
To mitigate the impact of the weakening rupiah against the US dollar, the government is actively implementing long-term strategic measures. These include efforts to boost domestic oil production and the ongoing preparation of local refineries. “We are pushing for increased domestic production, and we have already prepared our internal refineries to support this,” Yuliot explained.
The current exchange rate has breached a new psychological barrier, fluctuating between IDR 17,700 and IDR 17,800 per US dollar. This shift occurs even after Bank Indonesia raised its benchmark interest rate (BI-Rate) by 50 basis points to 5.25% in a move aimed at stabilizing the currency. According to Bank Indonesia’s transaction data, the rate hit IDR 17,877 per US dollar on Friday.
Minister of Energy and Mineral Resources Bahlil Lahadalia further clarified the situation, noting that even with the Indonesian Crude Price (ICP) reaching US$ 117.31 per barrel in April 2026, the subsidized fuel prices remain protected. Bahlil pointed out that the average ICP from January 2026 to date has stayed below the critical US$ 100 per barrel mark.
“Our average ICP since January has been approximately US$ 80 to US$ 81 per barrel, which is well below the US$ 100 threshold,” Bahlil stated. Given this fiscal context, he reaffirmed his confidence that prices for subsidized fuels will remain stable through the end of 2026.
Summary
The Indonesian Ministry of Energy and Mineral Resources has guaranteed that prices for subsidized fuels, such as Pertalite and Biosolar, will remain unchanged through the end of the year. This decision stands despite the rupiah’s recent depreciation to approximately IDR 17,877 per US dollar. Officials confirmed that national fuel supplies remain secure, with reserves significantly exceeding the mandated 23-day operational requirement.
To address the weakening currency and rising global costs, the government is focusing on long-term strategies, including increasing domestic oil production and upgrading local refineries. Furthermore, officials noted that the Indonesian Crude Price (ICP) remains stable, averaging between US$ 80 and US$ 81 per barrel since the start of the year. Consequently, the government maintains that current fiscal conditions support the continued stability of fuel prices for consumers.