No Fuel Price Increase, Purbaya: I Will Hold the Line

Jakarta — Finance Minister Purbaya Yudhi Sadewa has confirmed that the government currently has no plans to increase subsidised fuel prices, notwithstanding the spike in global crude oil prices triggered by the Iran-United States-Israel conflict.

“No, we will not increase fuel prices,” Purbaya stated following a limited coordination meeting chaired by Coordinating Minister for Economic Affairs Airlangga Hartarto in Jakarta on Monday, 16 March 2026.

Purbaya emphasised that during the coordination meeting, the government reaffirmed that the state budget (APBN) will continue to function as a shock absorber against global crude oil price surges resulting from the conflict.

The rise in global crude oil prices, which briefly exceeded US$100 per barrel — surpassing the 2026 budget assumption of around US$70 per barrel — can still be cushioned by the APBN due to the government’s sufficiently strong fiscal capacity.

“When global oil prices rise, if we immediately pass them through to fuel prices, doesn’t that slow the economy? Doesn’t it affect purchasing power? It definitely will. So the APBN and government absorb it first,” Purbaya stressed.

This approach has kept domestic fuel prices relatively stable despite volatility in global crude oil markets, particularly following the closure of the Strait of Hormuz, a major global oil trading route, due to the Iran-US-Israel conflict.

“So there’s no external volatility now, right? Yes, because the government is absorbing the cost increase,” he said.

Purbaya further assured that the government’s budget has sufficient resilience to respond to sustained pressure on global crude oil prices. However, he declined to specify how long the budget could withstand if fuel prices remained above macroeconomic assumptions.

“As for me, I will hold the line,” Purbaya said emphatically, making a strong gesture by clenching both fists.