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

The government has assured that the prices of subsidised fuel (BBM) will not increase, even though global oil prices are currently above $100 per barrel. Finance Minister Purbaya Yudhi Sadewa emphasised that the government will absorb the pressure from rising energy costs through the State Revenue and Expenditure Budget (APBN) to avoid burdening the public.

“No (fuel prices will not rise). So, we are absorbing the economic pressure in the APBN. If we release it, like in other countries, the public might panic,” said Purbaya at the Presidential Palace Complex in Jakarta on Thursday (19/3/2026).

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 factored into the budget structure. According to him, the government has prepared various measures to safeguard fiscal health, both through expenditure savings and increased state revenues.

“Our subsidies are regulated and calculated for a full year. Even with the current prices, we have already assumed what the impact will be on the APBN. We will take steps, both savings and revenue increases, so that our APBN remains secure. Up to now, the calculations are still safe,” he clarified.

Purbaya stressed the importance of the APBN’s role as a shock absorber to ensure that public economic activities continue normally without a surge in cost burdens. He reminded that if energy pressures were directly passed on to the public, it could trigger panic similar to that seen in several other countries.

“So, the public must also understand that the APBN absorbs shocks like this, allowing people to continue their businesses and activities without excessive cost increases. That’s sometimes forgotten,” said Purbaya.