Global Oil Prices Rise; Purbaya: No Need to Overhaul State Budget Yet
Finance Minister Purbaya Yudhi Sadewa is unwilling to hastily overhaul the state budget and revenue expenditure, or APBN, due to recent increases in global oil prices. According to Purbaya, global oil prices must be monitored as they remain volatile.
Purbaya wants to ensure oil prices stabilise before taking steps to revise the state budget. “So we observe and confirm—are prices really rising, are they really falling? If prices rise for a few weeks, we could anticipate they will continue rising. But that’s not the case here. They rise suddenly and then fall again,” said Purbaya at the Presidential Palace in Jakarta on Tuesday, 10 March 2026.
Purbaya stated that changes to the APBN must be undertaken carefully. State budgets, he noted, cannot be altered too reactively.
Purbaya does not wish to repeatedly amend the APBN if oil prices continue to fluctuate up and down. “I’m tired of continuously changing the budget. So we need to confirm what the movement looks like. Once we’re certain, only then will we invite everyone to discuss the APBN,” he said.
Purbaya also ensured that the current APBN remains capable of financing fuel subsidies amidst global price fluctuations. “It’s still safe, still strong. Oil prices have only risen for a few days, while we provide subsidies for a full year,” he stated.
The closure of the Strait of Hormuz in the Persian Gulf due to the war between the United States and Israel against Iran has caused a surge in global oil prices. The conflict in the region has now entered its eleventh day.
According to reports from Sputnik, Brent crude oil briefly reached US$118 per barrel for the first time since 17 June 2022. This figure is higher compared with the average oil price in January 2026, where Brent (ICE) stood at US$64 per barrel and US WTI at US$57.87 per barrel.
On Tuesday, 10 March 2026, Brent crude prices fell to US$92.45 per barrel. The decline occurred after US President Donald Trump stated that the war in the Middle East would soon end.
In the conflict between the US-Israel alliance and Iran, military strikes have occurred in several areas, including central Iran and Beirut. The situation has intensified following reports that the Strait of Hormuz—a vital route for global energy trade—remains effectively closed. This strait is known to handle approximately one-fifth of global oil distribution.
The closure of this strategic route has also forced several oil producers in the Persian Gulf region, including Saudi Arabia, to reduce production. This situation has raised concerns about global energy supply and prompted investors to shift towards safe-haven assets such as gold.