Amid Middle East Conflict, Finance Minister Purbaya Urges Indonesia to Prepare for Potential Fuel Crisis

Several countries are beginning to feel the impact of the war raging in the Middle East. The Philippines has even declared a national energy emergency status. Similarly, Bangladesh is starting to be hit by a fuel crisis.

Finance Minister Purbaya Yudhi Sadewa has urged Indonesia to prepare if the conflict escalation in the Middle East persists. Purbaya stated that the energy emergency issue is not related to the State Revenue and Expenditure Budget (APBN), but rather to supply disruptions.

“An energy emergency is not about the APBN. An energy emergency is, for example, if the supply stops—that’s what I’m worried about. Not the price, but the supply running out; we still have supply now. So if it’s called an emergency, no, but we must keep preparing for the future,” said Purbaya at his office in Central Jakarta on Wednesday (25/3/2026), as quoted from detikFinance.

Purbaya assured that the APBN can still withstand energy price increases and will not be changed until the end of the year. Nevertheless, he leaves the final decision to President Prabowo Subianto.

“I won’t change the APBN or existing subsidies until the point where prices might get very high later. At the current time, until the end of the year with current prices, we can still hold with the APBN; it depends on the leadership’s decision later, but I offer that it’s safe,” he said.

Purbaya assessed that it is still too early to change oil prices and energy subsidies in the APBN. “Later, if it rises (too high), we’ll calculate again how much. So it’s not automatic suddenly becoming US$100; we calculate the average,” he added.

Philippines Declares Energy Emergency

The Philippines has declared a national energy emergency status considering its position as a country highly dependent on imports of petroleum products. The government immediately formed a committee to ensure the movement of supplies, distribution, and availability of fuel. This includes the distribution of food, medicines, agricultural products, and other essential goods.

“The declaration of a national energy emergency will enable the government to implement responsive and coordinated measures based on existing laws to address the risks posed by disruptions in global energy supplies and the domestic economy,” said Philippine President Ferdinand Marcos Jr, as quoted from Reuters.

The declaration will apply for one year, giving the government authority to purchase more fuel and petroleum products to ensure timely and sufficient supplies. If necessary, payments will be made partially in advance from the contract amount.

Philippine Energy Minister Sharon Garin said her country has fuel stocks of around 45 days based on current consumption levels. They are working to purchase 1 million barrels of oil from countries within and outside Southeast Asia to boost stocks, although there may be delays.

Bangladesh Residents Queue for Hours for Fuel

In Bangladesh, several petrol stations are experiencing long queues and chaotic situations due to limited stocks. Customers have to queue for hours to buy fuel, leaving many exhausted, frustrated, and annoyed.

The Bangladesh Petrol Station Owners Association has urged for security at petrol stations and threatened to stop supplying fuel. The government is asked to take firm action to control the situation.

“Under the state-owned fuel supplier, Bangladesh Petroleum Corporation (BPC), oil companies supply a daily amount of fuel that is insufficient compared to demand,” it said, as quoted from India Times.

At the same time, petrol station workers are struggling to cope with increasing pressure and frequent arguments with annoyed customers. The association also expressed its concerns. The government is deemed to have neglected security issues in the fuel distribution system.

Some motorcyclists without licences have even threatened to burn petrol stations. Moreover, crowds have forced petrol stations to open and taken large amounts of fuel without payment.

“Such incidents now threaten petrol station owners across the country; there is almost no security guarantee. Along with the fuel shortage, the lack of security provided by the state has made this crisis even worse,” it said.