Finance Minister Purbaya: Indonesia Not in Energy Emergency, State Budget Still Withstands Price Pressures

JAKARTA - Finance Minister Purbaya Yudhi Sadewa has emphasised that Indonesia is not in an energy emergency state, even as several countries announce such statuses amid global turbulence.

He stated that an energy emergency is not defined by pressures on the State Revenue and Expenditure Budget (APBN), but rather by the availability of energy supply.

“An energy emergency is not about the APBN. An energy emergency is, for example, if the supply stops. That’s what I’m afraid of. Not the price, but if there’s no supply,” Purbaya said at the Ministry of Finance in Jakarta on Wednesday (25/3/2026).

On the fiscal side, Purbaya assured that the APBN is still able to withstand the pressure of rising global energy prices. The government also has no plans to change the subsidy scheme or budget structure in the near term.

The state treasurer said that, with the current energy price assumptions, fiscal conditions are expected to remain safe until the end of the year, although the final decision rests with the government leadership.

“Up to now, with the existing prices, we can still hold the APBN until the end of the year. So, the situation is still safe,” he said.

Nevertheless, the government remains vigilant against potential future disruptions, especially if the global crisis lasts longer or recurs.

Meanwhile, around 90 per cent of economic activity comes from the non-government sector, particularly the private sector.

According to him, the government’s focus is not only on state spending efficiency but also on maintaining stability in the broader economic sector.

“If I can maintain that 90 per cent, why fuss over the small part? It’s not ineffective, just not 100 per cent efficient as hoped,” he said.

He added that the fiscal policies pursued so far have proven able to keep economic growth solid, even amid threats of global slowdown.

Purbaya noted that Indonesia’s economic growth is still around 5.4 per cent, one of the highest among G20 countries.

“If the economy continues to grow, it means we’re not in a recession. That’s what we’ve been maintaining,” he said.