Purbaya Discusses Subsidised Fuel as Global Oil Prices Surge

Finance Minister Purbaya Yudhi Sadewa has assured that the prices of subsidised fuel (BBM) will not rise even though global oil prices have now surpassed the US$100 per barrel level. The government, he said, will absorb the pressure from the energy price increase through the State Revenue and Expenditure Budget (APBN) to avoid burdening the public.

“No (BBM 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, as quoted from Antara.

Purbaya explained that the energy subsidy mechanism has been designed within the annual framework. This means the government has already factored in fluctuations in global oil prices into the budget structure.

The government has also prepared various measures to maintain fiscal health, both through spending savings and increases in state revenue.

“Our subsidies are regulated and calculated for a full year. Even with the current prices, we have assumed what the impact will be on the APBN. We will take steps, whether savings or revenue increases, so that our APBN remains safe and up to now the calculations are still safe,” said Purbaya.

Furthermore, Purbaya emphasised the important role of the APBN as a shock absorber for volatility so that public economic activities can continue normally without spikes in cost burdens. Especially considering that passing on energy pressures directly to the public could potentially trigger panic as seen in several other countries.

“So the public must also understand that the APBN absorbs shocks like this, so that people can still conduct their businesses and activities without excessive cost increases. That’s what people sometimes forget,” said Purbaya.