Finance Minister Assures Strong State Budget Can Withstand Fuel Price Pressures Despite Oil Reaching US$100
Finance Minister Purbaya Yudhi Sadewa has confirmed that the government maintains strong fiscal ammunition to keep fuel prices (BBM) stable until the end of 2026, amid growing global concerns following a surge in crude oil prices that have now breached US$100 per barrel.
Purbaya stated that the government currently has no plans or calculations to adjust fuel prices. He assured the public that the state treasury remains in a secure position to bear the burden of fuel subsidies at current price levels.
“At present, there is no calculation to raise fuel prices because we still have sufficient funds for the current fuel price level,” Purbaya said on Tuesday (17 March), according to reports.
The former head of the Deposit Insurance Corporation explained that the State Budget (APBN) must function as a shock absorber to protect citizens from the impacts of geopolitical conflict in the Middle East, which is disrupting the global energy supply chain.
“The budget’s function is to absorb external shocks. At this moment, the government’s budget is absorbing this,” he added.
Purbaya made bold statements regarding Indonesia’s fiscal resilience. He stated that as long as the President wishes, fuel prices can be maintained through December 2026. He even challenged observers who doubted the nation’s financial capacity.
“If it’s this much, with the President’s will, it can be sustained until year-end as well. So I have quite substantial funds that can still be utilised. Those observers don’t know where the money is,” asserted the Finance Minister.
Despite government optimism, PT Pertamina reported that the international market situation remains uncertain. Global oil prices have surged beyond US$100 per barrel due to escalating Middle East tensions disrupting the global energy supply.
Pertamina’s Vice President of Corporate Communication, Muhammad Baron, noted that the price increase was driven by disruptions in global energy supply and distribution. Pertamina is currently conducting close monitoring of market dynamics.
“Pertamina continues to monitor global oil price dynamics, which are currently hovering around US$100 per barrel,” Baron stated. He added that national energy authorities maintain intensive communication with the government to determine strategic responses to the price surge.
The Finance Minister also stated that there is currently no urgency to issue a Government Regulation in Lieu of Law (Perppu) to widen the APBN deficit. Indonesia’s energy import dependency remains relatively high, and observers view the government’s fuel price policy as a positive step to maintain national economic stability.