EN.malanginspirasi.com – The Indonesian government has rolled out comprehensive contingency measures to counter the sharp global oil prices spike triggered by escalating conflict between the United States, Israel, and Iran. Energy and Mineral Resources Minister Bahlil Lahadalia firmly assured the public that prices of subsidized fuels such as Pertalite and Biosolar will remain unchanged at least until Eid al-Fitr (Lebaran) 2026.
“We assure the public there is no need to worry. Subsidized fuel prices are safe and will not rise until Eid,” Bahlil stated.
World oil benchmarks surged dramatically on Thursday, 12 March 2026. Brent crude reached approximately US$100 per barrel, climbing 8–9 percent in a single day. West Texas Intermediate (WTI) traded around US$94 per barrel, up 7–8 percent.
The spike was driven by US-Israeli strikes on Iranian facilities, Iranian threats to close the Strait of Hormuz, and attacks on tanker vessels in the Persian Gulf. Tehran has even warned that prolonged conflict could push prices as high as US$200 per barrel.
Despite the external pressure, Indonesian authorities confirmed that domestic fuel stocks remain secure for the next 21 days.
The government is maintaining subsidized BBM prices through several coordinated actions: increasing the energy subsidy allocation within the State Budget (APBN) to cushion the burden on citizens, closely monitoring the Middle East situation via inter-ministerial coordination, and intensifying oversight of fuel distribution to prevent misuse – especially in the lead-up to Ramadan and Idul Fitri.
To avoid swelling the budget deficit, the impact of higher global prices is being fully absorbed through the APBN.
Finance Minister Purbaya Yudhi Sadewa added that the government still possesses sufficient fiscal space.
“If oil prices rise too high, we will try to absorb it first through the APBN,” he explained.
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Accelerate the Shift to Biofuels
In a longer-term strategic move, the government is accelerating the national biofuel (BBN) program to reduce dependence on imported crude oil.
Diesel will be upgraded from the current B40 blend to B50, while gasoline blending will be fast-tracked to E20 (20 percent ethanol) well ahead of the original 2028 target. Higher biodiesel and bioethanol blends are being promoted aggressively.
Officials have not ruled out possible adjustments to subsidy quotas should reserves tighten if prices continue climbing. Nevertheless, the overarching goal is clear: minimize the impact on ordinary Indonesians. Inflation, transportation fares, and overall living costs are expected to stay under control.
Citizens are encouraged to use energy wisely and actively support the biofuel program to strengthen national energy resilience.
