Indonesia Keeps Subsidized Fuel Prices Steady Amid Global Oil Surge
Indonesia has announced that it will maintain the current price of Pertalite, its subsidized fuel, until the end of the year despite a surge in global oil prices to $107 per barrel. This decision was made by Deputy Minister of Energy and Mineral Resources Yuliot Tanjung, who stated that 'we will maintain the current price until the end of the year' for Pertalite and other subsidized fuels.
Tanjung noted that non-subsidized fuel prices will be adjusted in line with market prices, based on a one-month average global oil price. The government is accelerating domestic oil and gas exploration and development to mitigate the impact of geopolitical tensions, with several fields mapped for potential production capacity of 2,500 to 3,000 barrels per day.
The goal is to achieve national energy self-sufficiency by producing one million barrels of oil per day by 2029-2030. Former Finance Minister Purbaya Yudhi Sadewa has previously assured that the state budget deficit will remain under control through the end of the year, based on a macroeconomic assumption of an average Indonesia Crude Price (ICP) of $100 per barrel for the year.