Indonesian Minister of Small and Medium Enterprises, Maman Abdurrahman, confirmed that the recent increase in unsupported fuel prices will not adversely affect small business owners. This statement was made during a press conference in Jakarta, where he clarified that most of these businesses depend on subsidized fuel such as subsidized diesel and liquefied petroleum gas, which the government maintains at stable prices.
Maman pointed out that the government is taking significant steps to ensure the stability of subsidized fuel prices, especially given the unstable global economic conditions stemming from conflicts in the Middle East. He emphasized that these policies aim to protect small businesses from any negative repercussions that may arise from the rise in unsupported fuel prices.
Details of the Event
On April 18, 2026, Pertamina raised the prices of unsupported fuel, with the price of Pertamax Turbo (RON 98) increasing from 13,100 rupiah to 19,400 rupiah per liter. The prices of Dexlite and Pertamina Dex also saw significant increases, raising concerns among some small business owners. However, the prices of subsidized fuels such as Pertalite and subsidized diesel remain stable at 10,000 and 6,800 rupiah per liter, respectively.
The minister assured that these subsidized prices will help maintain stability in the local market, allowing small business owners to continue their operations without needing to alter their operational strategies.
Background & Context
Indonesia, like many other countries, faces significant economic challenges due to the global rise in oil prices. These conditions require the government to take effective measures to ensure the stability of the local market. Historically, Indonesia has heavily relied on subsidized fuel, which has supported the local economy and small businesses.
Small and medium enterprises are a crucial part of the Indonesian economy, representing a large percentage of the total businesses in the country. Therefore, maintaining the stability of subsidized fuel prices is vital to ensure the continuity of these enterprises.
Impact & Consequences
Although the increase in unsupported fuel prices may not directly affect small businesses, there are concerns about the impact of rising prices of other raw materials, such as plastics, which have seen price hikes due to supply disruptions from the Middle East. Maman confirmed that the government is working on finding alternatives to reduce dependence on these supplies.
Government efforts include coordinating with the Ministry of Trade to expand supply sources from countries like India, Africa, and America, which may help alleviate pressure on the local market.
Regional Significance
Arab markets are also affected by rising oil and raw material prices, especially amid ongoing conflicts in the Middle East. The stability of subsidized fuel prices in Indonesia could serve as a model for Arab countries seeking to maintain economic stability amidst global challenges.
In conclusion, the Indonesian government's stance on subsidized fuel prices highlights the importance of a swift response to economic challenges, contributing to the support of small and medium enterprises and enhancing local market stability.