Indonesia’s government will not raise the price of subsidised fuel this year or next, Deputy Finance Minister Juda Agung said, even after the country’s crude oil reference price jumped sharply in September.
ICP climbs on Middle East tensions
The Indonesian Crude Price, known as ICP, averaged $112.81 per barrel in September 2026, up from $89.43 per barrel in August, an increase of $23.38 per barrel. The September figure was set under Ministry of Energy and Mineral Resources Decree No. 395.K/MG.03/MEM.M/2026.
The jump was attributed to tensions in the Middle East disrupting world oil markets. Despite the scale of the move, Deputy Finance Minister Juda Agung confirmed there would be no increase in subsidised fuel prices.
Budget refocusing instead of price rise
Juda Agung said the Ministry of Finance chose budget refocusing rather than raising subsidised fuel prices, adding that the budget would be more focused and more targeted.
The government said it would monitor oil price movements closely to maintain national energy resilience. No timeline was given for when subsidised fuel prices might next be reviewed, with the freeze set to extend through 2027.
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