TEMPO.CO, Jakarta - Indonesian Vice President Gibran Rakabuming Raka responded to Jusuf Kalla's proposal to raise fuel prices. The former vice presidents made their proposal amid a potential energy crisis caused by the war in the Middle East.
Gibran stated that the government appreciates the proposal to raise fuel prices. However, he mentioned that the proposal is not in line with President Prabowo Subianto's instructions.
"President Prabowo has clearly and firmly instructed his staff to maintain the stability of subsidized fuel prices," Gibran said in a written statement on Thursday, April 9, 2026.
According to him, the commitment to maintaining fuel subsidies aims to enable lower-income citizens to afford fuel for their vehicles. Instead of raising fuel prices, Gibran stated that the government is focused on creating policies that will not have adverse effects on the lower-income population.
"The government is determined to make budgetary efficiencies and refocus to protect the lower-income population from the ripple effects of fuel price hikes," he added.
Gibran believes that higher fuel prices will lead to increased prices for staple goods and transportation. He also mentioned that the government is continuously pushing for the accelerated transition towards electric vehicles and sustainable energy.
Previously, former Vice President Jusuf Kalla proposed that the government consider reducing fuel subsidies amid the potential energy crisis resulting from the war in the Middle East. According to Jusuf Kalla, reducing subsidies could be a strategy for reducing budget deficits.
Jusuf Kalla stated that this policy is commonly implemented in other countries, although it leads to fuel price hikes. "We ask for consideration to reduce deficits, reduce debt, by reducing subsidies," Kalla said at his residence on Jalan Brawijaya, Kebayoran Baru, Jakarta, on Sunday, April 5, 2026.
Jusuf Kalla believes that excessively cheap fuel prices, supported by subsidies, actually encourage excessive energy consumption among the public, hindering conservation efforts.
"Some say not to raise it. Yes, it's good not to raise it for now. But the debt will pile up with extensive subsidies. That is the most dangerous for all of us. If all of us are in debt," Kalla said.
Jusuf Kalla did not deny that reducing subsidies and raising fuel prices could spark public protests. However, according to Kalla, this policy is necessary to reduce the state budget deficit.
Ervana Trikarinaputri contributed to the writing of this article
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