Minister of Finance Purbaya: The State Budget is Still Safe even though Oil Prices Rise

JAKARTA - Minister of Finance Purbaya Yudhi Sadewa spoke out regarding the escalating conflict in the Middle East involving the United States, Israel, and Iran, as well as its impact on the State Budget (APBN).

He assessed that the growing concerns in the community regarding the potential disruption of the state budget tended to be excessive and the narrative that the state budget would be in disarray was not based on clear calculations, but rather on the spread of fear.

"We see people are making a fuss about my budget, saying it will be chaotic, it will be. What else? Can I say it's an economist? That's what's unclear. I'm upset about it. I'm upset because they are just spreading fear. Wah if 120 (US dollars per barrel) the budget will be destroyed. It's not even the average of 74 dollars (US dollars per barrel). With yesterday's price like this. We calculate the average of a year," he said in a media briefing, Wednesday, March 25.

Purbaya emphasized that the price of oil, which is one of the important indicators, is still in the range of an average of around 74 US dollars per barrel, or only an increase of around 4 dollars from the assumption in the state budget.

He emphasized that the calculation of the budget was based on an annual average, so that price fluctuations in one or two days did not directly affect the overall calculation.

"But if it continues to rise in the future, of course it will raise the average to the top. But the way it is calculated is like that. Calculate what the burden is on the budget for a year," he explained.

He also ensured that the government had various anticipatory steps and reserves to maintain budget stability, so that the public was asked not to worry too much about the current situation.

Regarding the issue of rising fuel prices after Eid, Purbaya emphasized that the decision was based on careful calculations by the government, not just speculation by certain parties.

"Oh, later when the Eid is over, the price of fuel will rise. He is indeed an economist. I am the minister of his economy, the minister of finance. I count. We count everything. They never count. Try to name who? Name the economy that you all call. Who is the most harsh criticism of me? (Ferry Latuhihin) He attacks. I'm stupid in all sorts of ways," he said.

He explained that he had directly checked various economic indicators, such as PMI, consumer confidence levels, to retail and vehicle sales, which showed that the economic condition was still quite good.

"My actions to the land market are strange, he said. When I saw the data it was good. They said the reality was dong. Yes, I looked at the market. It was also crazy. So why are you going to the market now? He said that. It's useless. He said he wanted to check the data. I checked it. I checked the data behind. PMI, let alone. Consumer Confidence. Retail Sales. Car Sales. Then they said what the reality was like. I checked the reality. It was also crazy," he explained.

'He never held economic data. He was a financial analyst. So he never struggled at all in the economic field," he added.

Purbaya emphasized the importance of using accurate data before delivering opinions to the public, so as not to cause unnecessary panic.

He also explained his long experience in the field of economics, ranging from being part of the economic think tank team in the era of President Susilo Bambang Yudhoyono, to various other strategic roles in the government.

According to him, this experience is the basis for understanding and dealing with the dynamics of the national economy.

"So you have to be careful in choosing economists who can give the right or wrong input to the government," he said.