Purbaya: No Discussion Yet on Raising Subsidised Petrol Prices

Finance Minister Purbaya Yudhi Sadewa said the government has not discussed options to raise the price of subsidised petrol amid a surge in global oil prices. The price surge was triggered by the escalation of conflict in the Middle East after the United States and Israel attacked Iran.

‘Not yet. Because I said our budget is still safe for now,’ Purbaya said at his office on Friday, 6 March 2026. He said he had calculated a scenario in which world oil prices reach US$92 per barrel for a year. According to Purbaya, that situation could widen the state budget deficit (APBN) to as much as 3.6 percent of GDP.

However, Purbaya said the deficit widening would occur only if the government does not intervene. He stated the government would take steps such as trimming the budget in non-priority spending items.

The state’s treasurer argued Indonesia would not automatically plunge into a crisis if world oil prices reach US$92 per barrel. He noted that world oil prices had previously breached US$150 per barrel, which led to economic slowdowns. But the conditions at that time did not result in a crisis.

Purbaya said raising subsidised petrol prices would be the last option if world oil prices are too high and impose a burden on the APBN. ‘If the budget is not robust at all, there is no other way; we will share with the public to some extent. In other words, there would be an increase in subsidised petrol prices,’ he said.

According to Trading Economics data, West Texas Intermediate (WTI) crude rose to US$84 per barrel on Friday, 6 March 2026. On a weekly basis, US benchmark oil prices jumped about 21 percent, the largest rise since 2020. Meanwhile, Brent crude also rose. That global benchmark price rose 4.93 percent or about US$4.01 to US$85.41 per barrel.