Easing US-Iran tensions may lower Pertamax fuel prices: Purbaya

From the data we see now, it appears we have moved past that period of pressure.

Jakarta (ANTARA) - Prices of Indonesia’s non-subsidized Pertamax fuel could decline soon amid expectations of lower global crude oil prices, Finance Minister Purbaya Yudhi Sadewa said on Monday (June 22).

"I am confident that with the potential decline in global oil prices, the price of Pertamax and other fuels will also fall, thus strengthening the foundation of our economic growth," Purbaya said during a working meeting with the Regional Representative Council (DPD) in Jakarta.

The Finance Minister attributed the shifting global economic outlook to a potential diplomatic breakthrough between the US and Iran.

If peace agreement is reached, he noted, it would bring positive spillover effects for Indonesia, including a more stable rupiah exchange rate, more competitive borrowing costs and a sustained influx of investment.

"This means that growth momentum should improve going forward. One of the key pressures facing Indonesia is that when global oil prices rise, we are forced to raise some non-subsidized fuel prices, even though we maintain subsidized ones," the minister added.

Purbaya acknowledged that fluctuations in non-subsidized fuel prices had previously placed a financial burden on the public. However, current macroeconomic indicators suggest that the domestic economy has successfully weathered the pressure.

"From the data we see now, it appears we have moved past that period of pressure. Going forward, we just need to improve the existing foundations so that we can grow more optimally," he explained.

The minister expects lower global oil prices to support stronger domestic economic performance in the second half of 2026.

Despite global uncertainties, Purbaya asserted that Indonesia’s economy demonstrated robust resilience throughout the first half of 2026.

He pointed out that the country's economic growth reached 5.61 percent in the first quarter of 2026, supported by low inflation and adequate foreign exchange reserves.

Furthermore, the trade balance recorded a surplus for 72 consecutive months through April 2026, while bank credit grew by double digits and the manufacturing sector returned to the expansionary zone.

According to Purbaya, these indicators collectively point to a significant recovery in market confidence.

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Translator: Imamatul Silfia, Yashinta Difa

Editor: M Razi Rahman

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