Oil Price Breaches US$100, Purbaya: Calm Down, Subsidised Fuel Price Not Rising Yet!
Finance Minister Purbaya Yudhi Sadewa responded to the rise in global crude oil prices that have breached the level above US$100 per barrel. He affirmed that the government continues to monitor price developments before taking policy steps.
Purbaya stated that the rise in oil prices had only occurred in a short timeframe, so the government could not yet draw conclusions regarding its impact on the State Budget (APBN).
“It’s only been one day (oil price at US$100). Our calculation is for a full year. What is the average for one year? If the average for one year is 100, it means it continues to rise. Let’s see what condition our budget is in. Clearly, we try to absorb the shock as much as possible,” said Purbaya during a visit to Tanah Abang Market, Central Jakarta, on Monday (9 March).
He urged the public not to rush to conclude that oil prices would remain at elevated levels over the long term.
“Friends, do not hastily determine or conclude that the price will remain at 100, or even head towards 150, and our budget cannot cope. We will continue to assess from time to time,” he said.
According to Purbaya, the government will evaluate developments in oil prices within approximately one month before deciding on further steps.
He also affirmed that the government is not hastily making decisions regarding possible increases in subsidised fuel prices.
“Our assumption is for a full year. If now it is 100 and then falls to 50, the average could be the same as before. So do not be too quick to judge. After one month we will predict what the oil price will be like so that we can take the right policy,” he explained.
Purbaya added that the government has faced surges in global oil prices several times before and has been able to manage their impact through appropriate fiscal policies.
“I am quite competent. We have experienced high oil prices several times. The country also did not collapse because the policy was appropriate,” he asserted.
He confirmed that there is currently no policy to raise subsidised fuel prices.
“In the sense of raising fuel prices. Because we see what the conditions will be like going forward. If everything changes in a month, we will evaluate,” he said.
The government will also consider the impact of policies on the economic conditions of the public.
“Many citizens also benefit from the subsidy. So we see whether that is beneficial or not for the economy. But now is not the time to make a decision because the money is still sufficient,” said Purbaya.
Meanwhile, the surge in global oil prices is occurring amid increased geopolitical tensions in the Middle East. According to Sputnik reports, Brent crude prices briefly breached US$118 per barrel, the highest level since 17 June 2022.
The price increase was triggered by an escalation of conflict between the United States and Israel against Iran, after both countries launched major attacks on Iran on 28 February 2026.