Indonesian Finance Minister Purbaya Yudhi Sadewa during a press conference on fuel and air transportation policy in Jakarta on April 6, 2026. (Kementerian Sekretariat Negara RI)
Subsidised fuel is guaranteed to remain stable through the end of the year by the Indonesian government, as confirmed by the Minister of Finance, Purbaya Yudhi Sadewa. Speaking at a press conference on subsidised fuel and air transportation policy in the capital Jakarta on April 6, he noted that the country’s fiscal capacity remaining sufficient amid current raising tension in the Middle East, which have raised concerns over potential volatility in global energy markets.
Several scenarios had been considered in order to develop the subsidised fuel policy, including the fuel price assumption which could reach near US$100 per barrel through the end of the year. Purbaya emphasised that the government will continue to provide fuel subsidies and that there are no plans to increase subsidised fuel prices in the near term.
Moreover, he urged the public not to worry about the state’s financial condition. He highlighted that the government has a fiscal cushion in the form of a budget surplus worth Rp420 trillion (US$24 billion), which could be used in case of a surge in global oil prices. According to the Ministry of Finance, until the first quarter of 2026, Indonesia’s state budget deficit remains below 3%, signaling a positive trend. This position is considered sufficient to maintain its subsidy commitments while continuing to support broader economic policies.
In addition, the administration believes the likelihood of oil prices remaining elevated for a prolonged period is relatively limited, although the government will continue to monitor developments in global energy markets. Fiscal discipline and subsidy policies remain key instruments in the government’s strategy to safeguard household purchasing power, maintain price stability, and support economic resilience amid ongoing global uncertainty.
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