Jakarta, ThedailyID — Indonesia’s economic fuel prices have surged amid the impact of war on global energy markets. Finance Minister Suahasil Nazara said Pertalite should have cost Rp18,102 per liter without subsidies in October 2026, while Solar should have reached Rp21,457 per liter.
However, the government continues to maintain retail prices at Rp10,000 per liter for Pertalite and Rp6,800 for Solar. The state budget covers the difference through fuel subsidies and compensation.
“For Pertalite, the selling price is Rp10,000, while its economic price is Rp18,102. The government covers the difference. Since April, the economic price has started to rise, increasing the budget needs for energy subsidies and compensation,” Suahasil said during a press conference at the Finance Ministry on Friday, November 13.
He explained that from 2024 through March 2026, Pertalite’s economic price remained only slightly above the government-set retail price. However, the situation changed in April as the conflict pushed global energy prices higher.
Solar experienced a similar increase. Its economic price reached Rp21,457 per liter in October, while the government maintained its retail price at Rp6,800.
Suahasil said the state budget covered the price gap through government revenue, including taxes paid by the public.
The government recorded Rp415.8 trillion in energy and non-energy subsidies and compensation as of October 31, 2026. This represented 93 percent of the allocated budget and marked a 32 percent increase from the same period last year.
The expenditure included support for fuel, electricity, 3-kilogram LPG, fertilizer, and interest subsidies for People’s Business Credit (KUR).
Of the total, subsidies accounted for Rp261.4 trillion, while compensation reached Rp154.4 trillion. In comparison, the government spent Rp315 trillion on subsidies and compensation throughout 2025.
Subsidized Fuel Distribution Increases
The government distributed 15.244 million kiloliters of subsidized and compensated fuel through October 2026. This represented a 9.5 percent increase from 13.916 million kiloliters during the same period in 2025.
Suahasil said the higher distribution partly reflected increased public economic activity, which had also driven fuel consumption.
He added that taxpayers collectively funded the price gap through the state budget, thanking Indonesians for contributing to the subsidy and compensation programs.
