Indonesia fuel prices see non-subsidized cuts amid B50 rollout

Non-subsidized fuel prices in Indonesia have decreased across various providers, including Pertamina, Shell, BP-AKR, and Vivo. In the Jakarta area, Pertamax Turbo dropped from Rp19,300 to Rp18,300 per liter, while Pertamax Green 95 fell to Rp16,600 per liter. Subsidized fuel prices, such as Pertalite and Solar, remain unchanged.

Simultaneously, the BPH Migas regulator reported that the distribution of B50 biodiesel has proceeded smoothly since its implementation on July 1, 2026. Monitoring across Java, Sumatra, and Kalimantan indicates that private vehicles, logistics trucks, and buses are using the biofuel without engine damage or technical issues.

However, economists warn of a looming fiscal challenge regarding energy subsidies. Due to global geopolitical uncertainty and rupiah depreciation, energy subsidy and compensation costs reached approximately Rp233 trillion by late June 2026. Projections suggest these costs could rise to Rp526 trillion by year-end, significantly exceeding the initial APBN budget allocation.