Jakarta. Indonesia will keep subsidized fuel prices unchanged through the Eid holiday period despite a sharp spike in global oil prices triggered by escalating conflict in the Middle East, Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday.

Bahlil said the government is closely monitoring geopolitical tensions involving Iran, Israel, and the United States, which have pushed crude prices above $100 per barrel.

“We see global oil prices have now exceeded $100 per barrel. This is the condition resulting from the war between Iran and Israel and the United States,” Bahlil said at the Energy and Mineral Resources Ministry office in Jakarta. He also assured that Indonesia’s crude oil and fuel supply remains secure despite turbulence in global energy markets.

“Our issue right now is not supply. Stock is not a problem; everything is available. The challenge lies in the price, and we are currently conducting an exercise to formulate comprehensive measures,” Bahlil said.

The government is preparing a series of strategic responses to address fluctuations in global oil prices driven by the geopolitical situation. While rising crude prices could increase pressure on the state budget through higher subsidy costs, Bahlil stressed that the government is taking steps to shield consumers from the impact.

“I want to assure the public there is no need to worry about fuel prices. God willing, there will be no increase in subsidized fuel prices until the Eid holiday period,” he said.

The surge in oil prices, now above the Indonesian Crude Price (ICP) assumption used in the state budget, has also drawn the government’s attention as it could place additional pressure on fiscal spending.

Nevertheless, the government said it would coordinate across ministries to mitigate potential risks. Bahlil emphasized that maintaining energy supply stability and protecting subsidized fuel prices remain top priorities.

“That coordination with the finance minister regarding oil prices is a government matter, and there will certainly be communication,” he said.

Global crude prices surged sharply at the start of the week as escalating hostilities in the Middle East disrupted energy production and shipping routes across the region, particularly around the strategic Strait of Hormuz.

Brent crude futures jumped more than 15% to above $100 per barrel on Monday after briefly rallying as much as 29% earlier in the session. The surge followed production cuts by several major Middle Eastern producers after disruptions to oil flows through the Strait of Hormuz.

The earlier spike marked the steepest one-day gain since April 2020 and pushed prices to their highest level since June 2022, extending last week’s 27% rally in global crude.