Indonesia holds Pertalite prices steady despite $107 global oil surge

There will be no price increase for Pertalite or other subsidized fuels,

Jakarta (ANTARA) - Indonesia's Ministry of Energy and Mineral Resources has assured the public that prices of subsidized fuels, including Pertalite and Biosolar, will not increase despite global oil prices surging to US$107 per barrel.

"Regarding Pertalite, as stated by Energy and Mineral Resources Minister Bahlil Lahadalia, we will maintain the current price until the end of the year," Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said here on Tuesday (September 29).

"There will be no price increase for Pertalite or other subsidized fuels," he added.

However, Tanjung noted that prices of non-subsidized fuels will be adjusted in line with market prices. The adjustments will be based on the average global oil price over a one-month period.

"We will monitor the estimated average price for a month and determine the appropriate adjustments," he explained.

The government's reassurance comes in response to soaring global crude prices triggered by the escalating conflict between the United States and Iran.

Tanjung noted that global oil prices peaked at US$107 per barrel in late September 2026, marking a sharp upward trend after temporarily stabilizing in June and July.

To counter these conditions and mitigate the impact of ongoing geopolitical tensions, the deputy minister said the government would accelerate domestic oil and gas exploration and development.

The ministry has already mapped several oil and gas fields with a potential production capacity of 2,500 to 3,000 barrels per day. Development of these fields will be accelerated throughout 2027 and 2028.

The acceleration is part of the government's broader strategy to achieve its ambitious target of producing one million barrels of oil per day by 2029–2030, a key milestone in its efforts to achieve national energy self-sufficiency.

"We will accelerate exploration and development in 2027 and 2028 so that our target of one million barrels can be achieved," Tanjung said.

Addressing fiscal concerns, former Finance Minister Purbaya Yudhi Sadewa previously assured that the state budget deficit would remain under control through the end of the year.

His projection is based on the macroeconomic assumption that Indonesia Crude Price (ICP) will average around US$100 per barrel for the year.

Supporting this economic outlook, Yayan Satyakti, a researcher and lecturer at Padjadjaran University's Faculty of Economics and Business, calculated that the average ICP from January to September 2026 stood at approximately US$90.60 per barrel, well below that threshold.

Related news: Indonesia maintains fuel subsidy as global oil prices stay high

Translator: Putu Indah, Uyu Liman
Editor: M Razi Rahman
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