Global Oil Prices Surge; Finance Minister Addresses Free Nutrition Programme and Fuel Subsidy Budget
Jakarta – Finance Minister Purbaya Yudhi Sadewa addressed options for controlling unproductive expenditure and the potential adjustment of subsidised fuel prices in response to surging global oil prices.
However, Purbaya emphasised that the Free Nutrition Meal (MBG) programme budget will not be cut, as the government merely intends to conduct an evaluation to ensure budget utilisation is genuinely effective and efficient.
“The MBG will not be cut. Only unproductive spending will be. We’ll see. If they propose buying motorcycles again, we’ll strike it out. Buying computers again, we’ll strike it out,” Purbaya said in the Tanah Abang area of Jakarta on Monday, 9 March 2026.
“Things that are unnecessary, things that have nothing to do with food will be removed,” he added.
He assured that the government will continue to evaluate regularly to ensure every expenditure is truly optimal in supporting President Prabowo’s main programmes.
“For the MBG, we monitor it regularly, and we won’t cut the budget. But we ensure that what is spent is truly effective and efficient,” Purbaya said.
Regarding adjustments to fuel subsidies, Purbaya confirmed that energy stockpiles are actually in safe condition. Although he acknowledged that the rise in global oil prices could potentially increase the burden of energy subsidies.
“We maintain stocks for several dozen days. If I’m not mistaken, 15 days or more. This stock is 20 days, meaning it’s in excess, not depleted. That’s a normal stock level, not an emergency,” Purbaya said.
Therefore, he emphasised that the government will continue to monitor global oil price developments in the coming period before making any decisions regarding this matter.
“It will automatically rise (subsidised fuel), but our assumption is for a full year. If now it’s US$100 per barrel, then it falls to US$50 per barrel, then the average could be the same as before,” Purbaya said.
“So up to now, there is no policy to change fuel subsidies. In the sense of raising fuel prices,” he said.