Indonesia Keeps Subsidized Fuel Prices Steady Amid $107 Oil Spike
Indonesia's energy ministry says Pertalite and other subsidized fuels will stay at current prices through year-end despite global crude hitting $107 a barrel.
Indonesia's Ministry of Energy and Mineral Resources confirmed that Pertalite, Biosolar and other subsidized fuels will retain their current rates until the end of the year, despite Brent crude climbing to $107 per barrel. Deputy Minister Yuliot Tanjung clarified that only non-subsidized fuels will be subject to market-linked adjustments, using a one-month average of global prices. He linked the recent price spike to escalating conflict between the United States and Iran.
To mitigate reliance on volatile imports, the ministry will accelerate development of several domestic oil and gas fields, targeting production of 2,500-3,000 barrels per day and aiming for one million barrels daily by 2029-2030. Former Finance Minister Purbaya Yudhi Sadewa said the fiscal deficit will stay under control, assuming the Indonesia Crude Price averages around $100 this year, a figure supported by Padjadjaran University research showing a $90.60 average so far.
