Purbaya: Subsidised fuel prices to rise if global oil prices outstrip the national budget
Jakarta (ANTARA) — Finance Minister Purbaya Yudhi Sadewa said that subsidised fuel prices will rise if world oil prices continue to rise and exceed the capacity of the State Budget (APBN). ‘If indeed the budget is not very strong, there is no other way; we will share with the public to some extent. In other words, there will be an increase in subsidised fuel prices,’ Purbaya said at a media briefing at the Finance Ministry’s building in Jakarta on Friday. However, he stressed that the increase would only occur if the APBN is unable to keep pace with the pressure from world oil prices.
However, Purbaya assured that he would take mitigatory steps to ensure that pressure from world oil prices does not widen the APBN deficit.
In addition to adjusting the price of subsidised BBM, another available option is the realocation of state spending. Some programme budgets with low urgency could be shifted to meet fiscal health needs. Meanwhile, expenditures that directly affect the public would not be moved and would remain a priority.
He cited the Free Nutritious Meals (MBG) as an example of a programme with room for budget realignment. The shift would not affect the programme’s core function in providing meals, but would affect supporting activities, such as the provision of motor vehicles for the Satuan Pelayanan Pemenuhan Gizi (SPPG).
‘The MBG programme is good, but we want to prevent spending that does not directly support meals, for example buying motorbikes,’ the Finance Minister said.
Moreover, Purbaya said Indonesia has previously faced higher world oil price pressures, with a record price of around USD 150 per barrel. The national economy managed to endure the pressure.
Purbaya is optimistic that this spike in oil prices can be navigated as well. ‘We once went through a situation where oil price reached USD 150 per barrel. Did the economy crash? It slowed somewhat, but did not crash. So we have experience,’ he said.
World oil prices rose due to the Middle East conflict triggered by the US-Israel war with Iran.
Brent rose 4.93% to USD 85.41 per barrel, while US WTI jumped 8.51% to USD 81.01 per barrel.
These prices are higher than the January 2026 average, where Brent (ICE) was USD 64 per barrel and US WTI USD 57.87 per barrel.
However, the Ministry of Energy and Mineral Resources (ESDM) assures that subsidised fuel prices will not rise and stocks remain safe amid the Middle East conflict dynamics, especially ahead of Eid al-Fitr.