Indonesia to keep subsidised fuel prices unchanged
The energy ministry says national fuel stocks remain sufficient for 18-20 days, while imports meet 25 per cent of domestic oil needs.
Indonesia will maintain prices for subsidised diesel and petrol to help contain inflation and protect purchasing power, the Ministry of Energy and Mineral Resources said. Its director-general of oil and gas, Laode Sulaeman, outlined the position at an online regional inflation coordination meeting on October 5, 2026.
Laode said subsidised fuel prices had a significant impact on communities, particularly farmers and fishers who use these fuels. Keeping prices unchanged was central to controlling inflation in the energy sector, he said.
The government is also seeking oil directly from countries with surplus supplies, moving away from its usual tender-based procurement approach. Imports account for 25 per cent of Indonesia's domestic oil requirements.
According to Laode, Pertamina's tenders had attracted almost no participants, prompting the search for alternative suppliers. He said purchases through this approach could cost more than under regular procurement. National fuel inventories nevertheless remained sufficient to cover 18-20 days, he added.
Laode attributed fuel queues in some regions solely to distribution difficulties linked to El Nino, rather than shortages. He said dried-up river routes had forced deliveries onto trucks, which could carry less fuel than the vessels normally used for river transport.
