Finance Minister Purbaya Monitors Global Oil Prices, Evaluates Impact on State Budget Monthly
JAKARTA – The government will monitor global oil price developments regularly to anticipate their impact on the state budget (APBN).
Finance Minister Purbaya Yudhi Sadewa stated the government will not rush to conclusions based solely on short-term price movements.
“It has only been one day. Our calculations are based on a full year average. What is the average for the entire year? If the annual average is 100 dollars per barrel, that means it continues rising,” said Purbaya following an inspection at Tanah Abang Market on Monday (9 March 2026).
Nevertheless, he believed evaluations cannot wait until year-end, as delayed decisions risk becoming ineffective.
“If we wait an entire year that becomes too late. Correcting at year-end would be too late. So we will assess the situation monthly. Later we will conduct a comprehensive evaluation,” he stated.
According to Purbaya, the government will attempt to absorb shocks from rising global oil prices through fiscal policy if necessary.
“Clearly we will try to absorb the shock as much as possible. We will ensure the momentum of economic growth is not disrupted,” said Purbaya.
He added that domestic economic activity remains in an expansion phase with no significant disruptions yet visible from rising oil prices.
“Currently the economy is still expanding. I have not yet seen any disruption to domestic economic activity because of the high prices, but it has only been a short time,” he said.
Purbaya also urged various parties not to rush to conclusions that oil prices will continue surging to certain levels.
“Do not hastily assert that oil will stay at 100 dollars per barrel or even reach 150 dollars per barrel and that our budget cannot handle it. We will continue assessing from time to time,” he said.
He added that the government’s calculations regarding oil price assumptions in the state budget will continue adjusting to the latest global market developments.
Global oil prices surged sharply on Monday (9 March 2026), driven by rising tensions in the Middle East disrupting global energy supply. The widening conflict involving the United States, Israel, and Iran has prompted several major regional oil producers to reduce production.
According to Reuters, concerns about disruptions to shipping through the strategic Strait of Hormuz have pushed oil prices to their highest level since July 2022.
On Monday (9 March 2026) at 08:15 WIB, Brent crude oil for May 2026 delivery contracts jumped 18.35 dollars or 19.8 per cent to 111.04 dollars per barrel.