The Iran-US conflict in the Strait of Hormuz is still ongoing, and it is unclear how it will end. The war has affected the global economy, including Indonesia, and it will be more adverse if it continues without the certainty of peace.
The closing of the Strait of Hormuz, which accounts for one-fourth of the global oil trade (US EIA, 2025), is shaking the global energy market. In the period between February 27th and March 9th, 2026, Brent crude oil prices soared to US$ 91.8 per barrel (+27%), while natural gas prices were €55.8 per MWh (+74%).
Facing the increasing crude oil prices, the Government of Indonesia adjusted to increase the prices of non-subsidized fuels in Pertamina’s main products, Pertamax Turbo, Dexlite, and Pertamina Dex, on Saturday, April 18th, 2026. According to Pertamina, the highest price is for Dexlite and Pertamina Dex (non-subsidized diesel fuel), both at 9,400 (around $0.5) per liter, up from the price at the beginning of April 2026.
The current oil prices in Jakarta, Indonesia, are as follows (May 1st, 2026):
*Currency Rate: 17,000IDR/USD
Pertamina’s Gasoline
| Pertamax Turbo (RON 98) | Pertamax Green (RON 95) | Pertamax (RON 92) | Pertalite (RON 90) | |
| Prices/Liter (IDR | USD) | 19,400| 1.14 | 12,900 | 0.76 | 12,300 | 0.72 | 10,000 | 0.59 |
Pertamina’s Gasoil
| Pertamax Dex (CN 53) | Dexlite (CN 51) | Bio Solar (CN 48) | |
| Prices/Liter (IDR | USD) | 23,900| 1.41 | 23,600 | 1.39 | 6,800 | 0.40 |
Middle Class and the Way Out
The government has made a proper decision not to increase subsidized fuel, which would have a greater impact on society and inflation. Even though it does not apply to subsidized fuel costs, it also impacts the Middle and Upper Middle Class, who have to pay extra for gas, leaving less for other spending. If the government is not prudent, it would cause the middle class to fall to the lower class or remain in the same class for longer.
Raising oil prices is only a temporary and short-term solution. The Indonesian government must implement mid-term, long-term, and sustainable strategies. In this context, Indonesia needs to diversify its energy sources to reduce reliance on oil transported through the Hormuz Strait. This diversification would create opportunities for trade with other nations in line with national interests, benefiting from a proactive, open foreign policy. Additionally, Indonesia should focus on increasing domestic oil production and refining, conserving energy, and transitioning to more efficient and environmentally friendly energy sources.
Featured Image: PT Pertamina Patra Niaga
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