Iran's War Against the US-Israel Conflict, Finance Minister Purbaya Reiterates Fuel Supplies Remain Secure Despite Rising Oil Prices
Jakarta – Indonesian Finance Minister (Minister of Finance) Purbaya Yudhi Sadewa has affirmed the government’s readiness to anticipate the impact of the Iran conflict on the national fuel supply and prices. He emphasised that energy stocks and fiscal scenarios have been calculated to maintain economic stability. Serious disruption would only occur if there is no supply at all for a sufficiently long period.
“For about 20 days with no supply at all it would be chaotic. But that is not usually the case. We can certainly obtain supply, but the price will be slightly higher,” Purbaya told reporters at the Presidential Palace Complex, Jakarta, on Tuesday.
Purbaya explained that the government has conducted simulations for crude oil prices. He said that if the price of crude oil rises to 92 US dollars per barrel, the state budget would still be able to make purchases. “Oil prices are rising towards 80 dollars per barrel. I have calculated up to 92, and we can still control the budget, so there is no problem,” he said.
Earlier, Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia said his side is still calculating the impact of the global oil price surge on the 2026 State Budget (APBN 2026) due to the war between the United States–Israel and Iran. “In the APBN, the Indonesian Crude Price (ICP) is 70 US dollars per barrel, and now oil prices have risen to 78–80 dollars per barrel,” Bahlil said at a press conference on Latest Developments in the Middle East and Implications for the ESDM Sector at the ESDM Ministry, Jakarta, on Tuesday.
Consequently, global oil prices are currently above the macro assumptions stated in the 2026 APBN. As a country that imports around 1 million barrels per day, the rise in global oil prices burdens the APBN with the potential for higher energy subsidies borne by the state. On the other hand, Indonesia also gains additional revenue from higher global oil prices. The calculation will be done carefully as it relates to domestic energy subsidies.” (Antara)