Insight

Indonesia Tightens Fuel Distribution Amid Supply Disruption

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Algo Research Team


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Key Summary:


  • Daily fuel caps tighten access, impacting nationwide transport
  • Long-haul trucking economics worsen on constrained subsidized fuel
  • Spillover effects may lift logistics costs and consumer prices gradually

The Indonesian government, through the Downstream Oil and Gas Regulatory Agency (BPH Migas), has officially issued a new decree to control the daily distribution of Specific Fuel (Solar/Gas Oil) and Special Assignment Fuel (Gasoline RON 90) for transportation.


What's the buzz? Effective starting 1 April 2026, the policy mandates assigned business entities to implement strict daily volume caps per vehicle for subsidized fuel (RON 90 and solar).


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