JAKARTA— Minister of Industry Agus Gumiwang Kartasasmita responded to the increase in the price of non-subsidized fuel. He particularly highlighted concerns about the potential misuse of subsidized fuel by the industrial sector.
He emphasized that industry essentially does not use subsidized fuel. Therefore, there is no room for misuse of the subsidy. Regarding supervision, Agus stated that this is entirely the responsibility of law enforcement.
“Actually, for industry, subsidies are no longer in place. So, there have never been any subsidies. And of course, if the issue arises of how to monitor to prevent misuse, we will leave that entirely to law enforcement,” said the Minister in Jakarta on Tuesday, 21 April 2026.
He explained that the industrial sector’s primary need is diesel fuel, the use of which is well-documented. On the other hand, he acknowledged that the increase in non-subsidized fuel prices was due to the global situation, which has contributed to fluctuations in global oil prices, which have impacted domestic fuel prices. The Minister hopes this increase is temporary, and that when the global situation begins to ease, non-subsidized fuel prices will also adjust.
He stated that this situation is not unique to Indonesia, but also to other countries. Therefore, he believes that industry players, including the automotive sector, already have strategies in place to mitigate the impact of rising energy prices. He also touched on the possibility of market shifts in response to the fuel price hike, such as increased interest in electric vehicles. He believes such shifts are a natural part of market mechanisms, especially amidst issues of energy security and fuel price volatility.
“And if there is a shift in the market, that’s also perfectly normal. For example, now the market is shifting toward electric cars, due to energy security issues, fuel prices are rising. That’s a natural part of this market mechanism,” said the Minister. (*)
