To Maintain Fuel Prices, Purbaya Plans to Increase Subsidy Budget up to Rp 100 Trillion

Jakarta, VIVA – Finance Minister Purbaya Yudhi Sadewa plans to increase the fuel subsidy budget by up to Rp 100 trillion to maintain domestic fuel prices, in line with the surge in global oil prices due to the war in the Middle East.

However, he stated that this figure is a preliminary estimate, as it only includes the fuel subsidy component. Regarding the compensation budget, Purbaya said it would be recalculated by his team.

“Subsidy Rp 90-100 trillion. Compensation is separate. We’ll calculate the exact figure later,” Purbaya said at Wisma Danantara, Jakarta, on Wednesday, 1 April 2026.

He explained that the government’s fiscal space is currently quite flexible, if needed to cover the rise in oil prices due to geopolitical dynamics in the Middle East.

“Our (fiscal) space is still wide open. So don’t worry about the state budget condition,” he stated.

Purbaya even assured that the government is still capable of preventing domestic fuel prices from surging, despite the average global crude oil price rising to around US$100 per barrel.

“For now, assuming the average global oil price for the full year is US$100 per barrel. But now it’s dropped again (crude oil price), averaging US$76-US$77. So it’s still below the US$100 per barrel assumption earlier,” Purbaya said.

Furthermore, Purbaya is confident that if the average global oil price this year is around US$100 per barrel, the state budget deficit can still be maintained at 2.9%.

“So we’ve calculated all this. Even with an average of US$100 (per barrel), we’ve locked the deficit below 3%, around 2.9%. So no problem,” he remarked.