[SMM Flash News] Indonesia Proposes Increase in Subsidized Diesel and Kerosene Volumes to for 2027

Published: Jun 16, 2026 23:19

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Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia has proposed increasing the subsidized diesel (solar) allocation from 18.64 million kiloliters (KL) in 2026 to between 18.80 million and 19 million KL for the 2027 draft state budget. Subsidized kerosene allocations are also proposed to rise from 0.53 million KL to 0.543–0.561 million KL, bringing the total proposed subsidized fuel volume up to 19.561 million KL. Meanwhile, the subsidized 3-kg LPG quota will remain unchanged at 8 million metric tons, and the fixed diesel subsidy rate will stay at IDR 1,000 per liter.

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