Jakarta — The government has ensured that subsidized fuel prices remain stable despite global oil price volatility caused by rising geopolitical tensions in the Middle East. This assurance is intended to protect people’s purchasing power while maintaining national economic stability ahead of the Eid al-Fitr holiday.
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, emphasized that the public does not need to worry about domestic energy availability. He stated that the government has ensured that supplies of fuel and LPG remain secure, so people do not need to make excessive purchases or engage in panic buying.
“I ask my fellow citizens not to panic buy. God willing, our fuel and LPG supplies will be ensured by the state,” said Bahlil.
He explained that the government continues to closely monitor global conditions, particularly the impact of conflicts in the Middle East on global energy prices. Although global crude oil prices have risen significantly, the government is committed to maintaining domestic fuel pricing policies so that they do not burden the public.
Furthermore, Bahlil explained that the government is ready to increase the energy subsidy budget to absorb the impact of rising global oil prices. In the State Budget (APBN), the Indonesian Crude Price (ICP) assumption is set at US$70 per barrel, while global oil prices have now surpassed around US$100 per barrel.
“Currently, in our state budget the ICP assumption is US$70 per barrel, while now it has exceeded US$100 per barrel. We are still capable of financing the increase, so it is still being borne by the state,” Bahlil said.
In line with this, Minister of Finance Purbaya Yudhi Sadewa stated that the government currently has no plans to increase subsidized fuel prices in the near future. The government continues to maintain the existing subsidy scheme to ensure price stability at the consumer level.
“So far, there has been no policy to change fuel subsidies, in the sense of increasing fuel prices,” Purbaya said.
According to him, the government is currently focused on ensuring that domestic energy prices remain under control amid fluctuations in global oil prices influenced by global geopolitical dynamics. Purbaya added that national energy stock levels are currently in a safe condition. Moreover, although global oil prices are fluctuating, the cumulative average price still remains within the range assumed in the state budget.
Under these conditions, the government believes that the country’s fiscal capacity remains strong enough to absorb the impact of rising global energy prices without immediately passing the burden on to the public through higher fuel prices.
Purbaya also urged the public to remain calm and not be overly concerned about the global situation. He emphasized that the government has experience in dealing with high energy price pressures in the past.
“Just trust that we have faced high oil prices several times before, and the country has managed to get through them because the policies were appropriate,” he said.
Through well-targeted subsidy policies and strict monitoring of national energy conditions, the government remains optimistic that fuel price stability can be maintained. This step is expected to protect people’s purchasing power while also sustaining the momentum of national economic growth amid global uncertainty. (*)
