SBY's Analysis on Energy Price Volatility: For Indonesia, We Don't Need to Panic

Jakarta, CNBC Indonesia - The sixth President of the Republic of Indonesia, Susilo Bambang Yudhoyono (SBY), has provided an analysis regarding the global dynamics leading to fluctuations in energy prices. SBY delivered this analysis via his official Twitter account, as quoted by CNBC Indonesia on Wednesday (25/3/2026).

“From Singapore, I am also observing the global market turmoil, particularly the prices of oil, gas, and fuel. Although energy prices remain highly volatile, their adverse impacts are being felt by all countries, including Indonesia,” he stated.

According to SBY, many countries, including those in Asia, have taken concrete steps to save their economies. The approaches vary, but in SBY’s view, they are reasonable.

“Today, 25 March 2026, I also followed the policies of the governments of the Philippines and South Korea as conveyed by their presidents. For Indonesia, we don’t need to panic. However, our steps must not be late or misguided,” he said.

The Chairman of the Democratic Party’s High Council then noted that during his leadership of Indonesia, he faced similar crises. Soaring oil prices occurred in 2004-2005, then in 2008, and most recently in 2013.

“Surging oil prices placed immense pressure on our economy. Fiscal conditions and the state budget deficit widened, inflation and price stability were shaken, and the impact on the poor was profoundly felt. Although bitter and not easy, we chose a combination of policies, namely increasing subsidies and raising fuel prices,” SBY explained.

The government, according to him, also launched a massive energy conservation campaign. When SBY decided and implemented such measures, there was intense pro and con debate.

“Parliament was in uproar and protests were inevitable. But in the end, our economy was saved, and the poor were protected through the direct cash assistance (BLT) programme,” SBY said.

Furthermore, he stated that he is monitoring how President Prabowo Subianto’s administration has prepared the necessary policies and steps. SBY supports the energy conservation movement to reduce the budget deficit figure.

“To save the 2026 state budget in particular and the Indonesian economy in general, the government can choose several options. The important thing is that our economy is preserved ~ including maintaining growth, managing inflation (price stability), and preventing mass layoffs (job security). And most importantly, our vulnerable brothers and sisters must remain protected, as their lives will undoubtedly become even harder,” SBY remarked.