Oil Price Breaches 100 US Dollars, Golkar Criticises Finance Minister for Inaction
Jakarta – Muhamad Sarmuji, chairman of Golkar’s faction in the People’s Consultative Assembly, has urged the government to immediately implement fiscal mitigation measures in response to the surge in global oil prices. The situation has been compounded by the strengthening of the US dollar against the rupiah due to geopolitical tensions in the Middle East.
Geopolitical tensions in the Middle East region have driven global oil prices above $100 per barrel since Sunday, 8 March 2026. Simultaneously, global pressure has been reflected in the strengthening of the US dollar, causing the rupiah to breach the Rp 17,000 per dollar level at the start of trading on Monday, 9 March 2026.
Sarmuji stated that the combination of rising oil prices and US dollar strength could exert substantial pressure on the state budget and balance sheet (APBN), particularly on the energy subsidy allocation, which is highly sensitive to fluctuations in oil prices and exchange rates.
“The surge in global oil prices above $100 per barrel and the strengthening of the US dollar must be responded to seriously by the government immediately. The impact on the APBN could be very significant, especially on the burden of energy subsidies,” Sarmuji said in a statement on Tuesday, 10 March 2026.
Additionally, Sarmuji highlighted that the strengthening US dollar carries direct consequences for Indonesia’s external debt position. When the dollar strengthens against the rupiah, the value of dollar-denominated debt obligations automatically increases when calculated in rupiah terms.
“The strengthening of the US dollar also directly increases the burden of Indonesia’s foreign debt in rupiah value. This means that the government’s payment obligations become larger when converted to rupiah,” said the secretary general of Golkar’s central leadership board.
Sarmuji urged the Finance Ministry to conduct simulations of various scenarios promptly. The objective is to enable the government to anticipate fiscal consequences that may emerge should global conditions persist.
“Finance Minister Purbaya Yudhi Sadewa must immediately conduct simulations and mitigation to keep our APBN valid. The consequences for the APBN burden will certainly be high, particularly on subsidies,” Sarmuji stated.