Indonesia Keeps Subsidized Gas Prices Stable Amid Global Oil Price Volatility

Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the government will keep subsidized Pertalite gasoline prices unchanged through December, despite rising global crude oil prices. This decision is in line with President Prabowo Subianto's instruction not to raise subsidized fuel prices due to continued volatility in global markets.

Airlangga said the funding for this measure has already been built into the country's fiscal buffer. The government is considering adjustments to non-subsidized fuel prices if the Indonesia Crude Price (ICP) declines in line with weaker international oil prices. However, subsidized Pertalite remains priced at Rp10,000 ($0.61) a liter.

The state energy company Pertamina has already lowered prices for several non-subsidized fuels effective August 1. These price adjustments are part of a series of gradual changes made by the state-owned fuel retailer as market conditions improve.