Finance Minister Confirms APBN Unchanged Following Oil Price Increase: We Remain Safe and Strong

JAKARTA — Finance Minister Purbaya Yudhi Sadewa has confirmed that the state budget (APBN) will not be revised despite recent fluctuations in global crude oil prices.

He assured that the APBN remains capable of withstanding the increase in oil prices, which briefly touched 100 dollars per barrel following attacks by the United States and Israel on Iran.

“We remain safe and strong. This is only a few days of increases. Our subsidy assumption is for a full year. Our average annual assumption is 70 dollars. This has only been a few days,” Purbaya said at the Presidential Palace Complex in Central Jakarta on Tuesday, 10 March 2026.

“So it is not yet sufficient to change our budget. We can still absorb this,” he added.

Special analysis would be required to make such determinations, including predicting how long oil prices would continue to rise and fall.

Moreover, oil prices have already declined rapidly after US President Donald Trump announced the conflict would not be prolonged.

“We need to verify whether prices will truly continue rising or falling. A few days or weeks of increases can be anticipated, but this is not the case — they rise and suddenly fall again,” he said.

He was reluctant to make budgetary changes hastily without proper analysis.

“If oil prices fall, we change the budget again. That is troublesome. So establishing a budgetary response should be more cautious than responding to stock market movements. Stock movements have a short time horizon and limited range. We do not manage the budget that way,” said Purbaya.

“We cannot keep changing it repeatedly. I am exhausted from constantly revising the budget. So we need to ensure what the movement pattern is. Only after that certainty do we bring everyone on board,” he added.

For context, geopolitical tensions in the Middle East have created pressure on global oil prices and caused the rupiah to weaken against the US dollar.

This volatility has pushed global oil prices above 100 dollars per barrel since Sunday, 8 March 2026.

Meanwhile, at the beginning of trading on Monday, 9 March 2026, the rupiah breached the level of Rp 17,000 per US dollar.