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[BUSINESS] · Indonesia · 25 sources

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Indonesia prioritizes domestic energy and maintains subsidized fuel prices

The Indonesian government has committed to maintaining subsidized fuel prices despite rising global crude oil prices. Minister of Energy and Mineral Resources Bahlil Lahadalia stated that while the Indonesian Crude Price (ICP) has reached approximately USD 92 per barrel—exceeding the state budget (APBN) assumption of USD 70 per barrel—subsidized fuel costs will not increase through the end of 2026.

In a move toward energy sovereignty, the government is considering not renewing gas export contracts with neighboring countries to prioritize domestic demand. Minister Bahlil emphasized that Indonesia may halt exports to nations that do not demonstrate mutual respect or cooperation, noting a shift toward a “survival mode” to ensure national energy security.

Simultaneously, Indonesia is expanding its energy infrastructure and production. The government recently inaugurated the Mahakam Hub project, which is expected to increase gas production by 290 MMSCFD. Additionally, PT PLN Energi Primer Indonesia has begun supplying bio-CNG to the Belawan power plant in Medan to support the national energy transition.

Entities

Airlangga Hartarto · Bahlil Lahadalia · Bali · Indonesia · Mahakam Hub · Ministry of Energy and Mineral Resources · PT PLN Energi Primer Indonesia · PT Pertamina · PT Pertamina (Persero) · Prabowo Subianto

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