Parliamentary Commission VI Member Urges Government to Mitigate State Budget Pressure from Rising Oil Prices

Jakarta — Muhammad Sarmuji, a member of the Indonesian Parliament’s Commission VI, has urged the government to promptly prepare fiscal mitigation measures following the surge in global oil prices and strengthening of the US dollar, which threaten the state budget and expenditure (APBN).

“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. The impact on the APBN, particularly on the burden of energy subsidies, is significant,” said Sarmuji in a statement issued in Jakarta on Tuesday.

He stated that geopolitical tensions in the Middle East region between the US-Israel alliance and Iran have driven global oil prices above $100 per barrel since Sunday, 8 March 2026.

At the same time, global pressure is also reflected in the strengthening of the US dollar, which has pushed the rupiah exchange rate to levels beyond Rp17,000 per dollar at the start of Monday trading on 9 March 2026.

“The strengthening of the US dollar also directly increases Indonesia’s foreign debt burden when converted to rupiah. This means that the government’s payment obligations become larger when converted to rupiah,” he explained.

He called on the Ministry of Finance to immediately conduct simulations of various scenarios so that the government can anticipate the fiscal consequences that may emerge if these global conditions persist.

Sarmuji also emphasised that such anticipatory measures must be undertaken openly and in a coordinated manner, given their broad impact on national economic stability.

“This situation requires strong coordination and open communication so that the government, parliament, and the public are aware of the mitigation measures being prepared,” he stated.

He added that parliament will continue to monitor developments in the global situation that could affect the national economy.

Sarmuji believes that the government’s readiness to anticipate and assess risks is crucial for maintaining Indonesia’s economic resilience amid global geopolitical turmoil.

“Global turmoil cannot be avoided, but its impact on the national economy must be managed effectively. Therefore, anticipatory measures must be implemented immediately,” he concluded.