Video: Oil Price Surge Increases APBN Burden, What Must the State Do?

Amid the turmoil in the Middle East that has propelled a rise in global energy prices, the global rating agency S&P Global Ratings has placed Indonesia’s debt rating as the most vulnerable in Southeast Asia. S&P Ratings views the risk of surging energy prices as likely to widen the current account deficit and add to the subsidy burden on the APBN. This is concerning given that Indonesia’s fiscal buffers are relatively lower compared to other ASEAN countries. This assessment by S&P Ratings is described by CNBC Indonesia Economist Maesaroh as a warning regarding Indonesia’s fiscal, economic, and financial market conditions. The Middle East conflict has a significant impact on the global economy, including Indonesia, particularly in terms of energy, considering Indonesia’s dependence on oil and fuel imports as well as the substantial energy subsidies borne by the APBN. What is the analysis of S&P Ratings’ assessment of Indonesia’s debt rating? What steps must the government take and be wary of? For more details, watch the discussion with CNBC Indonesia Economist Maesaroh in Squawk Box, CNBC Indonesia (Friday, 17/04/2026).