Purbaya Serious About Maintaining Fiscal Discipline: We're Not Just Doing What the Boss Likes
Jakarta, CNBC Indonesia - Amid the energy emergency currently affecting various countries due to the war in the Middle East between Iran, the United States, and Israel, the government has assured that fuel oil (BBM) and gas supplies in Indonesia are safe and affordable, while keeping the state budget (APBN) deficit under control.
Finance Minister Purbaya Yudhi Sadewa stated that the stability of BBM and gas prices, including those subsidised by the APBN, remains under control to date because it has been carefully calculated by the government, not merely based on pleasing assumptions for certain parties, including President Prabowo Subianto.
“So we’re not ABS—asal bapak senang—but everything is well calculated,” Purbaya said at the Ministry of Finance headquarters in Jakarta on Friday (27/3/2026).
Purbaya explained that when crude oil prices briefly breached the US$100 per barrel level, the Head of State had actually questioned him about Indonesia’s fiscal condition, as the 2026 APBN macro assumptions pegged the reference crude oil price at US$70 per barrel.
When asked by President Prabowo, Purbaya said he immediately presented data on Indonesia’s fiscal capacity to absorb global shocks. He told Prabowo that even with high oil prices, over the past year, fiscal measures have been able to mitigate pressures while keeping the deficit below the safe limit of 3% of GDP as per the State Finance Law.
“In such conditions, we never panic but take a measured approach. There are no odd figures that we can’t calculate,” he explained.
“We ensure a measured quantitative approach. So if we’re serious, we’re very serious. When it’s done, we laugh about it. We adhere to the principles of fiscal discipline and APBN credibility,” Purbaya emphasised.
For information, the Ministry of Energy and Mineral Resources (ESDM) has also disclosed the latest conditions regarding energy availability, including national supplies of fuel oil (BBM) and liquefied petroleum gas (LPG) amid escalating geopolitical conflicts in the Middle East.
Energy Minister Bahlil Lahadalia explained that the government has conducted mapping and secured energy stocks. Specifically for Solar diesel, Bahlil noted that it is now fully met from domestic sources, without needing imports.
Meanwhile, for petrol and LPG, Indonesia still requires supplies from abroad with varying portions.
“On various occasions, even in conditions where almost the entire world is affected, we are grateful to Allah for the President’s directives and the people’s support—today, BBM in our beloved country, whether petrol, diesel, or LPG, is well fulfilled,” Bahlil said in a press conference after inspecting BBM supplies at a petrol station in Bolon, Colomadu Subdistrict, Karanganyar Regency, Central Java, on Thursday (26/3/2026).
As a precaution, the government has diverted sources of crude oil imports that previously passed through the Strait of Hormuz, one of the world’s key oil and gas trade routes impacted by the Iran-US-Israel conflict.
Bahlil mentioned that the government is seeking alternative sources to replace oil from the Middle East with other countries, on direct instructions from President Prabowo Subianto.
“We also know that 20% of our crude comes from the Strait of Hormuz; now we’ve switched to other places, and the supplies are, insya Allah, starting to improve. So please keep us in your prayers,” he added.
Amid these efforts, Bahlil urged the public to use energy efficiently and avoid excessive purchases or panic buying. He also issued a stern warning to individuals exploiting the crisis to hoard subsidised BBM or resell it to the industrial sector.
Regarding pricing policies, the government has assured that there will be no increases in subsidised BBM prices amid this global turmoil. The Ministry of ESDM continues to coordinate with the Ministry of Finance to find the right subsidy buffer scheme so that the crisis burden does not directly hit people’s purchasing power.
“Pray for us—from the government, especially for subsidies; until last night, the President’s directive was to find ways so we don’t burden the people. So for subsidies, I’m continuously working with the Finance Minister to find the best solutions—even in crisis, we still pay attention to the people’s conditions,” he stressed.