Bahlil: No Plan to Limit Fuel Subsidies Despite Malaysia Move
Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia has dismissed any immediate plan to curb Indonesia’s fuel subsidies, even as neighboring Malaysia moves to tighten its subsidized fuel quota in a bid to ease fiscal pressure.
Malaysia is set to reduce its subsidized fuel allocation from 300 liters to 200 liters per month starting April 1, 2026. The policy marks a shift toward fiscal consolidation, but Bahlil made clear that Indonesia is not following the same path.
“We currently have no option to limit subsidies. That means there is no increase in subsidized fuel prices, everything remains unchanged,” Bahlil said at the Coordinating Ministry for Economic Affairs office in Jakarta on Friday.
He stressed that any decision on energy subsidies must carefully weigh broader socioeconomic conditions, particularly the purchasing power of households. For now, the government is maintaining its existing subsidy framework without adjustments to pricing or distribution.
Bahlil added that authorities will continue to closely monitor global developments, including geopolitical tensions in the Middle East, which could disrupt energy markets and influence domestic policy direction.
“We will observe how things evolve. The situation is very dynamic, it can change weekly or monthly. What matters most is ensuring that our fuel stock remains secure,” he said.
The government’s priority, he said, is to safeguard domestic supply stability while staying responsive to external shocks that could impact Indonesia’s energy resilience.
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