Indonesia Proposes Increased Subsidized Diesel Quota for 2027

Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, has proposed an increase in the subsidized diesel fuel quota for the upcoming year. Speaking at a working meeting with Commission XII of the House of Representatives in Jakarta on June 15, 2026, Lahadalia outlined plans to raise the allocation from 18.64 million kiloliters (KL) in 2026 to between 18.80 million and 19 million KL in 2027.

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Diesel fuel in 2026 is 18.64 million KL. In 2027, we allocate 18.80 to 19 million KL.

As of May 2026, the realization of subsidized diesel fuel distribution stood at 7.77 million KL. In addition to diesel, the minister also proposed a modest increase for subsidized kerosene, from 0.53 million KL in the 2026 State Budget to 0.543-0.561 million KL. The distribution of subsidized kerosene reached 0.21 million KL by May 2026.

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LPG is the same on average. We allocate at 8 million metric tons, the same as 2026.

Cumulatively, the proposed increase in subsidized fuel volume for the 2027 State Budget Draft (RAPBN 2027) would bring the total from 19.17 million KL in 2026 to 19.343-19.561 million KL. Notably, the allocation for 3-kilogram LPG cylinders remains unchanged at 8 million metric tons for 2027, consistent with the 2026 allocation. The distribution of subsidized LPG reached 3.56 million metric tons by May 2026. Lahadalia also confirmed that the fixed subsidy for GasOil 48 would remain at Rp 1,000 per liter, aligning with the government's current policy.

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Once again, I say that this is the same as what the government led by Mr. President (Prabowo Subianto) has conveyed, while awaiting geopolitical dynamics.