Finance Minister Purbaya Assures Subsidised Fuel Prices Will Not Increase, National Budget Remains Robust
JAKARTA — The government has assured that it has no plans to raise the price of subsidised fuel oil despite sharp spikes in global crude oil prices resulting from geopolitical conflicts in the Middle East.
Finance Minister Purbaya Yudhi Sadewa stated that fuel oil subsidy policy continues to be maintained because fiscal conditions are deemed capable of absorbing the impact of global energy price volatility.
“To date, there is no policy to change fuel oil subsidies, in the sense of raising fuel prices,” Purbaya said after an inspection at Tanah Abang Market in Jakarta on Monday (9 March 2026).
Given these conditions, the government believes fiscal space remains adequate to mitigate the impact of oil price volatility on domestic energy policy.
Nevertheless, the government will continue monitoring global energy price dynamics in the coming period before making further decisions.
“Currently the economy is still expanding. I have not yet seen any disruptions to domestic economic activity because of high prices, but it has only been a short time,” he said.
He also cautioned various parties against hastily concluding that global oil prices will continue surging for an extended period.
“Do not be too quick to assume prices will remain at 100 US dollars per barrel,” Purbaya said.
“Some even say it will go to 150 US dollars per barrel and our budget cannot afford it. We will continue to assess from time to time.”
According to him, the government will continue to adjust the calculation of oil price assumptions in the national budget in line with the latest developments in the global market.
The widening conflict between the United States, Israel, and Iran has triggered concerns about disruptions to global energy supplies, as several major oil producers in the region have begun reducing production.
According to Reuters, concerns about disruptions to shipments through the strategically important Strait of Hormuz have also driven crude oil prices to their highest level since July 2022.
On Monday (9 March 2026) at 08.15 Western Indonesia Time, the price of Brent crude oil for May 2026 delivery contracts surged 18.35 US dollars, or 19.8 per cent, to 111.04 US dollars per barrel, equivalent to approximately Rp1,765,536 per barrel.