Ibas States that the State Budget Must Serve as a Shield for the People Against Global Economic Turbulence

The government faces a policy dilemma with no truly comfortable options.

Deputy Chairman of the MPR RI and Chairman of the Democratic Party Faction in the DPR RI, Edhie Baskoro Yudhoyono (Ibas), has emphasised the importance of a strong fiscal strategy to protect society from the impacts of global uncertainty. Ibas stressed that the state budget (APBN) must function as a shock absorber amid fluctuations in global energy and food prices.

Ibas made this statement during the National Discussion themed “Indonesia Amid Global Turbulence: Fiscal, Energy, and People’s Protection Strategies” in Jakarta on Wednesday (8/4/2026). The discussion involved various economic experts, academics, and members of the DPR RI.

Ibas explained that Indonesia is currently confronted with three major layers of dynamics: geopolitics, geo-economics, and geo-strategy. These trigger disruptions in supply chains that directly impact domestic purchasing power.

“Indonesia does not stand alone. We are connected in a dynamic global system. What happens in the world today directly affects our people’s lives, from energy prices and food to societal purchasing power,” said Ibas.

Ibas also highlighted the need for balance between maintaining the health of the APBN’s structure and the state’s obligation to provide social protection. He appreciated the government’s steps so far in consistently keeping energy prices from burdening low-income citizens.

“The APBN must remain a shock absorber, protecting the people from global pressures while safeguarding national economic stability,” he asserted.

In the forum, several experts provided critical notes. Professor Hikmahanto Juwana, Professor of International Law at UI, questioned the compliance of countries worldwide with global agreements, while Dr. Rudy Laksmono, Energy Resilience Expert at Unhan, reminded of the challenges posed by the national energy production deficit, which swells subsidies.

In response, Ibas emphasised that the key to facing global challenges lies in synergy between monetary and fiscal policies, as well as the courage to make decisions that favour the people.

“A strong nation is not one free from crises, but one capable of responding to crises quickly, accurately, and in the people’s interest,” he stated.