Oil Prices Surge, Parliament Reassures: Government Has Contingency Plans

Jakarta — The Head of Commission XI of the Indonesian Parliament, M. Misbakhun, has expressed confidence that the government possesses contingency scenarios to anticipate the surge in global crude oil prices resulting from geopolitical escalation in the Middle East.

Misbakhun stated that similar conditions have occurred in recent years, and therefore the government has learned valuable lessons in managing crude oil price spikes.

“Because this is not the first time this has happened and I want to assure the public that the government has prepared all scenarios,” he said when met at the Parliament building complex in Jakarta on Tuesday (10 March 2026).

Misbakhun noted that rising global crude oil prices will have consequences for the state budget, particularly regarding energy subsidies to the public.

“Of course, we must consider that the risk will certainly affect our subsidies. We have set our oil price benchmark at US$70 per barrel. Now it has exceeded that figure — there are moderate levels, heavier risk levels, and the most elevated risk levels,” he said.

However, Misbakhun remained confident that the government is well prepared. “These preparations have certainly been made. I am confident that the finance ministry and other financial sectors have already prepared these scenarios.”

Global crude oil benchmarks WTI and Brent even briefly touched US$119.5 per barrel during intraday trading on Monday (9 March 2026). Although prices have declined, WTI crude was trading at US$86.6 per barrel and Brent at US$90.6 per barrel in today’s session.