Indonesian Government Implements Fuel Price Adjustments and Subsidies for December 2025

Biodiesel Price Reduction

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has announced a decrease in the Market Index Price (HIP) for biodiesel to Rp 13,381 per liter for December 2025, representing a reduction from the previous month's price of Rp 14,036 per liter ¹

. This adjustment reflects the government's ongoing efforts to manage fuel prices in response to market fluctuations.

Fuel Subsidy Details Revealed

Finance Minister Purbaya Yudhi Sadewa provided insight into the actual costs of subsidized fuels, revealing that the true price of Pertalite should be Rp 11,700 per liter ²

. The government maintains a retail price of Rp 10,000 per liter, with the difference being covered by the state budget. Similarly, diesel fuel's actual price is Rp 11,950 per liter, but it's sold at Rp 6,800 per liter, resulting in a subsidy of Rp 5,150 per liter ²

Source 2

https://finance.detik.com/energi/d-8247043/segini-besaran-subsidi-supaya-pertalite-bisa-dijual-rp-10-000-liter

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Implications of Fuel Price Adjustments

These price adjustments and subsidy allocations have significant implications for both the national budget and consumers. The government's strategy to manage fuel prices while providing subsidies aims to balance economic stability with social welfare. The adjustments in HIP for biodiesel and the continued subsidization of Pertalite and diesel fuel demonstrate the government's commitment to maintaining affordable energy prices for the public.