April 17, 2026 | 08:46 pm
TEMPO.CO, Jakarta - The Ministry of Energy and Mineral Resources has set the Indonesian Crude Price (ICP) at US$102.26 per barrel in March 2026, the highest this year and far exceeding the 2026 State Budget assumption of US$70 per barrel.
The ministry's director general of Oil and Gas, Laode Sulaeman, said the benchmark price jumped compared to February 2026. He said in a written statement on Friday, April 17, 2026, "The average ICP in March 2026 rose by US$33.47 per barrel, from US$68.79 to US$102.26 per barrel."
Laode mentioned that the price hike was triggered by the escalation of war between the United States, Israel and Iran. The conflict has disrupted global energy supply, including distribution through the Strait of Hormuz, through which about 20 percent of the world's oil supply passes.
Globally, benchmark oil prices also rose throughout March 2026. The price of Brent (ICE) jumped to US$99.60 per barrel, West Texas Intermediate (WTI) to US$91.00 per barrel, and Dated Brent reached US$103.89 per barrel. Meanwhile, the OPEC Basket even touched US$116.03 per barrel.
The ICP hike has also put pressure on the state budget. The Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, stated that the increase of US$1 per barrel adds around Rp10.3 trillion to state expenditure, whereas state revenues only increased by around Rp3.6 trillion, resulting in a deficit of about Rp6.7 trillion.
Amid this situation, Energy Minister Bahlil Lahadalia, said the Indonesian government is mulling adjusting the price of non-subsidized fuel. He said non-subsidized fuel prices follow market mechanisms in accordance with regulations.
"We are making adjustments, since the price suddenly rose yesterday," said Bahli on Friday, April 17, 2026.
Nevertheless, Bahlil ensured that subsidized fuel prices would remain unchanged, as mandated by President Prabowo Subianto.
Fahmy Radhi, an Economics Faculty Lecturer at Gadjah Mada University (UGM), said the global oil price hike would create a dilemma for the government. If subsidized fuel prices are not raised for consumers, the burden on the State Budget to cover the price gap will swell.
But raising the prices of subsidized fuel will trigger inflation, as Pertalite and solar have the largest number of consumers. "This is indeed a difficult choice for the government," he said.
Read: Indonesia Holds Fuel Prices Steady Through Year-End on Secure Supply
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