Minister of Finance Ensures No Increase in Fuel Prices, Purbaya: I Have Sufficient Funds
Yogyakarta, 17 March 2026 — Finance Minister Purbaya Yudhi Sadewa has stated that fuel prices will not increase, and the government will maintain current fuel prices until year-end despite significant rises in global crude oil prices.
He explained that the state still has sufficient budget allocation to maintain current fuel prices. “The function of the budget is to absorb external shocks. So far, the state budget is absorbing this,” he said on Tuesday (17/3/2026).
“To date, there has been no calculation to raise fuel prices because we have sufficient funds to maintain current fuel price levels,” he added. “If it is at this level and the President wishes to maintain it until year-end, that is also possible — no problem,” he stated.
Purbaya also criticised economic observers who are unaware of where the state’s money is stored. According to him, much of this money remains unused. “So I have sufficient funds that can still be used, which these observers do not know about,” he said.
Previously, Finance Minister Purbaya Yudhi Sadewa chose to continue holding down subsidised fuel prices, despite crude oil prices surging due to conflicts between Iran, the United States, and Israel.
According to Purbaya, the government currently has no plans to raise subsidised fuel prices even though global crude prices temporarily exceeded 100 dollars per barrel, surpassing the 2026 state budget assumption of around 70 dollars per barrel.
Purbaya asserted that the rise in global crude prices can still be managed by the state budget due to the government’s strong fiscal resilience. “No, we will not raise fuel prices,” Purbaya said after meeting at the Coordinating Ministry for Economic Affairs on Monday (16/3/2026).
Purbaya stressed that the government will ensure the state budget continues to function as a buffer against shocks from surging global crude prices resulting from conflicts.
Thus, according to Purbaya, when global crude prices rise and are immediately passed through to domestic fuel prices, this could slow economic growth and affect public purchasing power. Consequently, these cost increases are temporarily being absorbed by the state budget and the government.