Purbaya Says Oil Price Rise Triggered by Iran–Israel Conflict Won’t Disrupt Indonesia

JAKARTA, KOMPAS.com - Finance Minister Purbaya Yudhi Sadewa has confirmed that the rise in crude oil prices sparked by the Iran–Israel–United States conflict will not disrupt the state finances. He said the government has fiscal space if oil prices exceed $80 per barrel. ‘The channel is through exports or oil prices. Oil has reached $80 per barrel; I estimate up to $92 we can still manage the budget, so it’s not a problem,’ Purbaya said at the Presidential Palace complex in Central Jakarta on Tuesday (3/3/2026). Purbaya will optimise state revenues by preventing leakage in tax and excise collection, so the pressure on the deficit due to higher oil prices can be dampened. ‘Our tax and excise collection has no leaks. So we can reduce the deficit pressure. Once it’s good, we will see what impact it has and then calculate the necessary measures,’ he said. ‘We can still manage, it’s not a big problem. Even if the global price is higher, as long as we can maintain domestic demand which contributes about 90 percent of our economy, we can still survive,’ he concluded. Israel attacked Iran, described as a ‘Major Combat Operation’, with missiles launched on Saturday (28/2/2026) morning. Subsequently, both sides are at war. The region is affected. The Hormuz Strait, a vital chokepoint for tanker traffic, was closed. Brent crude prices in Asian markets on Monday (2/3/2026) surged to $80–$81.5 per barrel (about Rp 1.35–1.37 million, exchange rate Rp 16,700). Meanwhile, merchant ships were held and global shipping companies halted operations in the Gulf region to prioritise crew and cargo safety.