Minister proposes raising subsidized diesel quota for 2027

Jakarta (ANTARA) - Indonesia’s energy minister proposed on Monday increasing the country's subsidized diesel quota to between 18.80 million and 19 million kiloliters for the 2027 budget, up from 18.64 million this year.

"Subsidized diesel stands at 18.64 million KL in 2026. For 2027, we are allocating 18.80 to 19 million KL," Energy and Mineral Resources Minister Bahlil Lahadalia told a parliamentary oversight committee.

Through May, Indonesia had already distributed 7.77 million kiloliters of subsidized diesel for the current year.

Bahlil also proposed raising the 2027 subsidized kerosene allocation to between 0.543 million and 0.561 million kiloliters, up from 0.53 million kiloliters in 2026. This would push total subsidized fuel volumes to a range of 19.343 million to 19.561 million kiloliters next year.

In contrast, the allocation for subsidized 3-kilogram liquefied petroleum gas (LPG) will remain unchanged.

"LPG is basically the same. We are allocating it at 8 million metric tons, the same as in 2026," Bahlil said. Government data showed that 3.56 million metric tons of subsidized LPG had been distributed by May.

Additionally, the government plans to hold the fixed subsidy for diesel steady at 1,000 rupiah (US$0.06) per liter.

"This aligns with what has been outlined by the government under President Prabowo Subianto, while we keep an eye on geopolitical dynamics," Bahlil added.

Translator: Putu Indah, Raka Adji

Editor: Aditya Eko Sigit Wicaksono

Copyright © ANTARA 2026