With Abundant State Budget Reserves, Purbaya: So I'm Staying Calm

Finance Minister Purbaya Yudhi Sadewa has emphasised that the state revenue and expenditure budget (APBN) is in a strong position to weather economic pressures stemming from the war in the Middle East, which has caused energy commodity prices to surge. He noted that even with crude oil prices fluctuating high and exceeding the 2026 macro assumptions of over US$100 per barrel, the government can still absorb price increases, particularly for subsidised domestic fuels, without drawing on APBN reserves in the form of the Budget Surplus Balance (SAL). “Nothing has been used so far,” Purbaya said at his office in Jakarta, quoted on Wednesday (22/4/2026). Purbaya stressed that the government’s SAL, currently amounting to Rp 423 trillion, has not been touched at all to address subsidy spending pressures due to rising energy commodity prices. He assured that SAL serves as the government’s very last resort if spending budgets can no longer keep the deficit target below 3% of GDP. “That Rp 423 trillion is truly the last line of defence. What we’re controlling now is other spending, and with savings, it’s sufficient,” he explained. With the APBN’s capacity to implement efficiencies and reallocate spending to priority sectors still intact, Purbaya expressed confidence in managing the 2026 APBN deficit in line with the target of below 3% of GDP, as stipulated in the State Finance Law. “So I’m staying calm. That’s why when there’s commotion outside, I’m puzzled,” Purbaya asserted. Purbaya even revealed that he had rejected a loan offer from the IMF and World Bank during the IMF-World Bank Spring Meeting in Washington DC, United States. The offer, valued at US$25 billion to US$30 billion, was declined because Indonesia’s APBN still has strong spending capacity. “They urged me to borrow from them. The IMF too. But I said, thank you for the offer. But our APBN condition is still good now, and I don’t need it yet,” he explained.