Finance Minister Purbaya Presents Data Showing Indonesia Adept at Managing Oil Price Increases
Jakarta — Finance Minister Purbaya Yudhi Sadewa assured President Prabowo Subianto that the government need not fear geopolitical shocks threatening Indonesia’s economy, as stated during a full cabinet plenary session on Friday 13 April 2026.
According to Purbaya, various commentators have suggested Indonesia would collapse if crude oil prices rose to above US$100 per barrel. “Many people say Indonesia’s economy will be utterly destroyed,” Purbaya stated. “However, our experience tells a different story.”
Purbaya presented the Coincident Economic Index, a measure reflecting current economic conditions, compared against Brent crude oil prices. The data demonstrates that Indonesia’s economy remains sound with no signs of collapse or recession.
During the 2007-2008 period, Brent crude prices surged to over US$220 per barrel on average monthly basis, yet Indonesia’s economy performed well. The country achieved 4.6% growth, attributed to appropriate fiscal and monetary policies implemented at the time. Similar conditions repeated in 2011, when crude prices spiked to US$110-US$120 per barrel, and economic indicators again showed robust performance.
“The index continues to rise,” Purbaya explained. “This demonstrates that with proper monetary and fiscal policies, and with your future policies, despite global economic fluctuations and volatile oil prices, we have the means and experience to manage the impact on our economy.”
Even during the Covid period, when oil prices increased sharply beyond US$100 per barrel, government policies successfully contained the effects of rising fuel prices. “Going forward, we must adjust our policies according to global oil prices, but we must assure our society that we will definitely succeed in managing this because our historical experience proves it,” Purbaya stated.
He concluded by dismissing online critics: “We need not be afraid. Those analysts on TikTok and YouTube claiming we will collapse have clearly never examined the actual data.”