Finance Minister Assures Subsidised Fuel Prices Will Not Rise Despite High Oil Prices

Jakarta (ANTARA) - The government has assured that subsidised fuel prices will not increase even though global oil prices are currently above $100 per barrel. Finance Minister Purbaya Yudhi Sadewa emphasised that the government will absorb the pressure from rising energy costs through the State Revenue and Expenditure Budget (APBN) to avoid burdening the public. “No (fuel prices will not rise). So we absorb the pressure on the economy in the APBN. If we release it, then like other countries, people will panic,” said Purbaya at the Presidential Palace Complex in Jakarta on Thursday. He explained that the energy subsidy mechanism has been designed within the annual framework, so the impact of global oil price fluctuations has already been accounted for in the budget structure. According to him, the government has prepared various steps to maintain fiscal health, both through spending savings and increasing state revenues. “Our subsidies are regulated and calculated for the full year. Even with current prices, we have assumed what the impact on the APBN will be. We will take steps, whether savings or increasing revenues, so that our APBN remains safe, and up to now, the calculations are still safe,” he clarified. Purbaya stressed the important role of the APBN as a buffer against shocks so that public economic activities can continue normally without a surge in cost burdens. He reminded that if energy pressures were directly passed on to the public, it could trigger panic as seen in several other countries. “So the public must understand that the APBN absorbs shocks like this, allowing people to continue their businesses and activities without excessive burden increases. That’s sometimes forgotten by people,” said Purbaya.