Purbaya Assures Subsidised Fuel Prices Will Not Rise Despite High Global Oil Prices

Finance Minister Purbaya Yudhi Sadewa has assured that subsidised fuel prices will not increase, despite current global oil prices surpassing US$100 per barrel. He emphasised that the government will absorb the pressure from rising energy costs through the state budget (APBN) to avoid burdening the public. “No (fuel prices will not rise). So we absorb the pressure on the economy in the APBN. If we release it, then like other countries, people will panic,” said Purbaya at the Presidential Palace Complex in Jakarta on Thursday, 19 March 2026. He explained that the energy subsidy mechanism has been designed within an annual framework, so the impact of global oil price fluctuations has already been accounted for in the budget structure. According to him, the government has prepared various measures to maintain fiscal health, both through spending savings and increasing state revenues. “Our subsidies are regulated and calculated for a full year. Even with current prices, we have assumed what the impact will be on the APBN. We will take steps, whether savings or increasing revenues, so that our APBN remains safe, and up to now, the calculations are still safe,” he stated. Purbaya stressed the important role of the APBN as a buffer against shocks, ensuring that public economic activities continue normally without spikes in cost burdens. He reminded that if energy pressures were directly passed on to the public, it could trigger panic as seen in several other countries. “So the public must understand that the APBN absorbs shocks like this, so that people can still conduct their businesses and activities without excessive burden increases. That’s sometimes forgotten by people,” he said.