Indonesia Guarantees Stable Pertalite Fuel Prices Through 2026

Indonesia's government has guaranteed that the price of subsidized Pertalite fuel will remain fixed through December 2026, a move aimed at ensuring energy stability amidst global oil market volatility. Coordinating Minister for Economic Affairs Airlangga Hartarto announced the guarantee, stating that the price is "included into [our fiscal] buffer."

This policy follows President Prabowo Subianto's directive to keep subsidized fuel prices unchanged. While subsidized fuel prices are locked, the government is simultaneously evaluating potential reductions for non-subsidized fuels if global crude prices continue to fall. State energy firm PT Pertamina has already begun adjusting tariffs for premium fuels, with Pertamax, Pertamax Green 95, and Pertamax Turbo seeing price drops effective August 1.

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For Pertalite, the price is guaranteed to remain fixed until December; this has already been included into [our fiscal] buffer.

Pertalite is currently priced at Rp10,000 per liter, and Biosolar at Rp6,800 per liter. The government also highlighted the benefits of its B50 biodiesel program, which reduces reliance on imported diesel, strengthens domestic resilience against geopolitical price shocks, and lessens the state's subsidy burden. Minister Hartarto emphasized that the President's directive prioritizes energy resilience, with the state budget acting as a buffer to ensure energy security without significant subsidy increases for the B50 program.

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The President's directive, amid uncertainty surrounding tensions in the Strait of Hormuz, is to safeguard energy resilience. The state budget acts as a shock absorber, ensuring that with B50 implementation, we no longer import diesel. In fact, at current price levels, the subsidy expenditure for B50 remains relatively small.