Deputy Finance Minister assures fiscal stability despite no increase in subsidised fuel prices

Jakarta (ANTARA) - Deputy Finance Minister Juda Agung has assured that Indonesia’s fiscal condition remains under control despite the government not increasing the price of subsidised fuel oil (BBM) amid the escalation of the Middle East conflict.

Juda stated that the government is not raising the price of subsidised BBM to maintain public purchasing power and contain inflation.

“The recipe is that we must maintain public purchasing power. So, we are not increasing BBM,” Juda said in a written statement in Jakarta on Wednesday.

Until the first quarter of 2026, Juda assessed that Indonesia’s economic performance remains solid, with economic growth potentially reaching 5.4 to 6 per cent.

This is supported by maintained domestic consumption, exports of commodities such as coal, strengthening crude palm oil (CPO) prices, and investment momentum.

Tax revenue and state expenditure performance also show positive trends. The state budget deficit remains under the 3 per cent threshold.

“Because subsidy spending has increased, we manage it so that other spending is more efficient but still effective in driving priority programmes. There are rooms for efficiency. This is what we manage so that overall, we can still keep the state budget deficit below 3 per cent,” Juda said.

The Deputy Finance Minister also emphasised that various fiscal policies taken have undergone careful calculations, as part of an adaptive stance, strong coordination, and transparent communication in facing global uncertainties.

“What we convey here in this fiscal is based on detailed calculations. So this is indeed input and of course, communication must continue to be done day by day,” he said.

In agreement, Finance Minister Purbaya Yudhi Sadewa also stated that all strategic policies taken, including holding subsidised BBM prices until the end of 2026, are the result of coordination under the direct instructions of President Prabowo Subianto.

Even though global conditions are uncertain, the State Treasurer asked the public not to panic.

He assured that the fiscal condition and state revenue are still in a strong position to support subsidy policies or holding BBM prices. One of the buffers is the Budget Surplus of Rp420 trillion.