Antara News·Indonesia·Friday, November 13, 2026 at 12:44 AM UTC

Government assures fuel subsidies safe despite rupiah slip

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Arnidhya Nur Zhafira, Yashinta Difa

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has assured the public that fuel subsidies will remain secure through the end of 2026, despite the Indonesian rupiah's depreciation against the US dollar.

At the close of trading on Thursday (November 12), the rupiah weakened by 90 points, or 0.50 percent, to Rp18,239 per US dollar from its previous closing level of Rp18,149 per US dollar.

"We see fluctuations, but as long as global oil prices remain in the range of US$92 to US$93 per barrel and the rupiah stays at its current level, fuel subsidies will remain secure through December," Airlangga said in Jakarta.

The government had previously confirmed that prices of subsidized fuel would remain unchanged until December 31, 2026.

Furthermore, the government has conducted calculations and assured the public that the State Budget can absorb increases in global oil prices, even if the average price reaches US$100 per barrel for the year, following the outbreak of the US-Iran conflict in early 2026.

The 2026 State Budget was initially formulated based on macroeconomic assumptions of an Indonesian Crude Price (ICP) of US$70 per barrel and an exchange rate of Rp16,500 per US dollar.

Airlangga said the government continues to monitor the rupiah's performance, taking into account domestic political dynamics and global geopolitical developments.

"Naturally, we are aware that various sentiments may be affecting the rupiah. We will simply wait and observe how things unfold, as the value of the dollar is not determined by a single day's movement, but rather by cumulative trends," Airlangga said.

He also expressed hope that Indonesia's economic fundamentals would remain resilient, particularly through economic activities at the community level.

"We hope that with the maturity of our economic fundamentals, any geopolitical or domestic political volatility can be cushioned by economic activity," Airlangga added.

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