Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, has announced that the government is developing a new pricing formula for non-subsidized fuel.
The minister described the upcoming mechanism as 'wise,' indicating a strategic effort to align domestic fuel costs with global market realities while mitigating inflationary pressure on consumers.
5 billion monthly on fuel subsidies despite Brent crude prices stabilizing between US$70 and US$90 per barrel.
The move comes as Southeast Asian nations grapple with the fiscal burden of fuel subsidies.
Neighboring Malaysia, for instance, continues to spend approximately RM3.5 billion monthly on fuel subsidies despite Brent crude prices stabilizing between US$70 and US$90 per barrel.
Similarly, Pakistan has recently established a Petroleum Prices Stabilisation Fund to cushion its economy against global crude volatility.
Indonesia’s reform effort appears to be part of a broader regional trend toward more sustainable energy fiscal policies.