Purbaya states April inflation is under control due to energy subsidies

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa assessed that inflation in April 2026, recorded at 0.13% month-to-month (mtm), remains sufficiently under control. Meanwhile, on a year-on-year (yoy) basis, April 2026 inflation was recorded at 2.42% (yoy). During a media briefing in Jakarta on Monday, Purbaya explained that inflationary pressures are now easing in line with the normalisation of policies implemented by the government. The government’s efforts to maintain fuel (BBM) subsidies amid geopolitical turbulence have also helped dampen inflation spikes, particularly in the energy sector. “Usually, inflation (is high) because oil prices rise excessively. But this is subsidised BBM, which we haven’t increased,” said Purbaya. The Finance Minister explained that the government’s decision to continue fuel subsidies has been carefully calculated. This is because, if energy subsidies were lifted amid still-rising global oil prices, inflation could surge and negatively impact society. “But if we let oil prices float, with BBM prices following global oil prices, inflation would certainly rise sharply, and purchasing power would be eroded, with the oil effect adding significantly,” stated Purbaya. “That’s the reason we’re holding on to part of the BBM subsidies,” he added. The State Treasurer also said that releasing fuel subsidies would not only affect inflation but could also suppress consumer purchasing power, ultimately leading to economic slowdown. “Our calculation is which is better: we subsidise or we remove the subsidy. There’s a lot of money, I spend it, but the economy collapses because it’s hard to control,” he clarified. Previously, the Central Statistics Agency (BPS) reported that Indonesia’s inflation in April 2026 reached 2.42% year-on-year (yoy). This is reflected in the rise of the Consumer Price Index (CPI) from 108.47 in April 2025 to 111.09 in April 2026. On a monthly basis, April 2026 inflation was recorded at 0.13% (mtm).