TEMPO.CO, Jakarta - Lamhot Sinaga, Deputy Chair of Commission VII of the House of Representatives, is urging the government to consider adjusting fuel (BBM) prices. The move is framed as a mitigation measure to alleviate pressure on the 2026 state budget amid surging global oil prices.
Lamhot stated that while the policy of maintaining current fuel prices is commendable, future fiscal conditions require adaptive measures to ensure budget stability.
"When global oil prices surge to $140 per barrel against a budget assumption of only $70, the fiscal pressure becomes significant. This is an emergency condition rather than a normal situation, requiring a quick and measured response," Lamhot said in a statement in Jakarta on Saturday, April 4, 2026, as quoted by Antara.
He explained that the spike in global prices, which doubles the Indonesian Crude Price (ICP) assumption in the 2026 state budget, has the potential to burden the budget substantially.
According to his calculations, every $1 increase per barrel adds up to Rp6 trillion to the state budget; therefore, a $70 surge could increase fiscal pressure by hundreds of trillion rupiah.
Lamhot added that the price hike was triggered by escalating geopolitical conflicts in the Middle East involving Iran, the United States, and Israel, as well as potential disruptions to energy distribution through the Strait of Hormuz.
In this context, he argued that a fuel price adjustment should be viewed as a strategic policy rather than a simple price hike.
"If the government carries out this adjustment, it is an effort to support the increasingly heavy burden on the state budget. This is a realistic policy to maintain fiscal stability, not a populist one," he said.
He warned that without such action, the burden of subsidies and energy compensation could rise sharply and weaken national fiscal resilience.
"If this step is not taken, we risk letting our state budget suffer greatly due to the surge in global oil prices," Lamhot stated.
He mentioned that his view aligns with Energy and Mineral Resources Minister Bahlil Lahadalia, who has emphasized the importance of policies that respond to global dynamics.
"The government is not simply raising prices, but making adjustments to ensure national economic stability amid strong external pressures," he said.
Lamhot also stressed the importance of social protection for the community, particularly vulnerable groups, to minimize the impact of such policies.
"Price adjustments must be accompanied by mitigation so that small communities remain protected. That is our commitment in the DPR," he said.
He invited all stakeholders to understand the global context behind energy policies and to strengthen collective awareness in maintaining national energy resilience.
Read: Purbaya to Add Rp100 Trillion to Indonesia's Energy Subsidies
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