Purbaya on Fuel Subsidy Budget Condition: Safe!

Finance Minister Purbaya Yudhi Sadewa has assured that the budget for fulfilling fuel oil subsidies is still relatively safe even though the Indonesian crude oil price (ICP) is still experiencing fluctuations. The fluctuating ICP is caused by global oil prices which are also still going up and down. “The ICP is still fluctuating, but we will see what the average price is like this year. What is clear is that we have prepared, so we ensure the budget is safe,” said Purbaya when met by reporters after receiving a meeting with Minister of Energy and Mineral Resources Bahlil Lahadalia on Tuesday. Purbaya explained that later the fuel subsidy budget will no longer be fixated on the daily ICP, but on the average ICP. “If it’s daily, it goes up and down, so I take the average throughout the year. What have the predictions been so far? What will it be like until the end of the year? That is what we anticipate and calculate,” Purbaya explained. Purbaya also admitted that he has prepared various scenarios so that the budget for fuel subsidies does not swell due to fluctuations in global oil prices. “So the method is, how much is it now, what is the predicted average until the end of the year, that is what we calculate, we have prepared various scenarios, and our budget is still safe,” he said.