Global Oil Prices Breach US$100 per Barrel; Government Focuses on Protecting Purchasing Power

The Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, responded to the surge in global crude oil prices now exceeding US$100 per barrel, stating that the government continues to monitor developments in real-time.

“This increase is a direct consequence of geopolitical upheaval in the Middle East region, particularly distribution disruptions through the Strait of Hormuz. All oil-importing nations face similar pressures,” Haryo told Media Indonesia on Monday 9 March.

He emphasised that the government’s primary priority is maintaining national economic stability whilst protecting public purchasing power amid rising global energy prices.

To mitigate the impact of the price increase, the government will optimise revenues from other commodity sectors, such as coal and palm oil, as a fiscal buffer.

“Strengthening social assistance schemes for vulnerable groups remains a priority option for the government,” he explained.

Haryo also stressed the importance of policy coordination between fiscal and monetary authorities. The synergy between the Finance Ministry and Bank Indonesia is considered key to maintaining economic stability amidst global pressures.

Meanwhile, the oil price surge is occurring amid escalating geopolitical tensions in the Middle East region. According to Sputnik reports, Brent Crude Oil prices briefly breached US$118 per barrel, the highest level since 17 June 2022.

The price increase has been triggered by an escalation of conflict between the United States and Israel with Iran. Tensions heightened following major attacks by the US and Israel against Iran on 28 February 2026.