Minister of Finance Purbaya on the Rupiah Rp17 Thousand and Oil Price Increase: APBN is Not Changed Due to Daily Turbulence

JAKARTA - Minister of Finance (Menkeu) Purbaya Yudhi Sadewa asked all parties not to rush to pressure the government to change the budget just because the rupiah broke through Rp. 17 thousand and the world oil price rose in recent days. According to the Minister of Finance, the State Budget is not managed with the logic of a daily market that can change at any time.

Purbaya conveyed this at the Presidential Palace Complex, Jakarta, Tuesday, March 10. He said one of the things discussed with the President was fiscal stability.

When asked about the weakening of the rupiah, Purbaya emphasized that the key was in the economic foundation. As long as the economy is maintained, the exchange rate turmoil is considered easier to control.

"As long as our economic foundation is good, controlling the rupiah is easier than if the economy is in chaos," said Purbaya.

He said the stability of the exchange rate could not be maintained by the government alone. It requires close cooperation with Bank Indonesia, especially to ensure that the economy remains good, liquidity is sufficient, and the exchange rate movement continues to be monitored.

"If we ensure that economic development is good, the money in the system is enough, and BI may monitor what the exchange rate is like. So, good cooperation between the government and BI is needed to maintain exchange rate stability," he said.

Regarding fuel subsidies, the Minister of Finance, Purbaya, ensured that the condition was still safe ahead of Eid al-Fitr. The increase in global oil prices that had just occurred a few days ago was not enough to change the annual budget.

"We are still safe, still strong. This is only a few days of rising. We get subsidies for a full year," he said.

Purbaya also rejected the view that the state budget must be immediately changed every time the price of oil rises. According to him, the government must be more careful in reading the direction of the market.

"Determining the response of the state budget is more careful than responding to stock movements," he said.

Therefore, the government chose to first see the actual direction of movement. If it is clear that the rise will last, then the budget step will be discussed further.