August 28, 2025 | 04:27 am
Indonesia's Ministry of Energy and Mineral Resources (ESDM) together with Commission XII of the Indonesian House of Representatives (DPR RI) have agreed on the basic macro assumptions for the ESDM sector in the Draft State Budget (RAPBN) for the 2026 Budget Year. One of the key points of the agreement is the determination of the price of Indonesian crude oil or Indonesian Crude Price (ICP) at US$70 per barrel. This is lower than the assumption in the 2025 State Budget which was US$82 per barrel.
In addition, the target for oil and gas production (lifting of oil and gas) is set at 1.594 million barrels of oil equivalent per day (BOEPD). This figure consists of 610,000 barrels of oil per day (BOPD) and 984,000 BOEPD of natural gas.
Minister of ESDM, Bahlil Lahadalia, is optimistic that the target can be achieved despite the challenges in the field. "God willing, it will be achieved. Although there are currently disturbances in some pipelines, and there was a fire in Sumatra, but we are accelerating," he said in a working meeting with Commission XII of the Indonesian House of Representatives, quoted from the live broadcast on Parliament TV, Wednesday, August 27, 2025.
In the meeting, the Ministry of ESDM and DPR also agreed on the volume of subsidized fuel for 2026, amounting to 19.162 million kiloliters (KL), consisting of kerosene (0.526 million KL) and diesel oil of 18.636 million KL.
Meanwhile, the volume of subsidy for 3-kilogram LPG was set at 8.31 million metric tons. Meanwhile, the diesel oil subsidy remains at Rp1,000 per liter, the electricity subsidy reaches Rp101.72 trillion, and the cost recovery is set at US$8.5 billion.
Bahlil is committed to the careful distribution of fuel subsidies. He said this is important to ensure that the distribution is on target and efficient.
"We know that this LPG must be distributed very carefully, and therefore the management of subsidies in the future will be very careful and we will do it wisely and once again, on target," he said.
Last July, Bahlil Lahadalia proposed an assumption of the price of Indonesian crude oil or Indonesian crude price (ICP) in the range of US$ 60-80 per barrel in the 2026 State Budget. This proposal is based on the realization of ICP from January to May, which was at US$70.5 per barrel, with an average ICP in May of US$62.75 per barrel, and experienced a surge in June, reaching US$69.33 per barrel.
Editor's Choice: Indonesian Crude Price Plunges to US$75.51 per Barrel in December
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