Purbaya Reveals Additional Plans for the Fuel Subsidy Budget of up to Rp100 Trillion

JAKARTA - Minister of Finance Purbaya Yudhi Sadewa revealed that the government plans to increase the budget for fuel subsidies (BBM) by around Rp90 trillion to Rp100 trillion.

This policy was taken to maintain the stability of domestic fuel prices amid rising world oil prices due to the conflict in the Middle East.

On the other hand, Purbaya emphasized that the figure was still temporary and would be recalculated in more detail, but the value only included fuel subsidies and did not include other energy compensation components.

"Rp90 trillion to Rp100 trillion, that's subsidies, compensation is another," he told the media, Wednesday, April 1.

"Yes, approximately, later we will calculate again," he added when asked for clarification regarding the amount of additional fuel subsidy budget.

In addition, Purbaya also did not detail the source of additional funding for the subsidy, but ensured that Indonesia's fiscal condition was still quite strong.

According to him, the government has sufficient financial space to mitigate pressure due to the surge in global energy prices.

"The financial condition of our country is very good. I have a lot of cushion," he said.

Purbaya explained that the burden of subsidies and compensation is very sensitive to movements in oil prices.

He explained that every increase in the price of oil by 1 US dollar per barrel is estimated to increase the budget deficit by around Rp6 trillion.

"What is clear is that every one dollar per barrel increase is about Rp6 trillion in additional deficit," he said.

However, Purbaya said, the government ensured that the state budget deficit remained under 3 percent of gross domestic product (GDP).

He explained, assuming the world oil price is in the range of 100 US dollars per barrel throughout this year, the government estimates that the budget deficit can still be controlled at around 2.9 percent.

"We have calculated all of it, even with an average of 100 US dollars, we have locked the deficit below 3 percent, around 2.9 percent, so it's not a problem," he said.

Purbaya added that currently the government's fiscal space is still quite loose to withstand the impact of rising global oil prices, so that domestic fuel prices can remain stable without the need for adjustments in the near future.

He also appealed to the public not to worry about the condition of the state budget, because all scenarios have been carefully considered until the end of the year.

"For the time being, yes, if the assumption of the world oil price is an average from here to the end of the year or a full year of 100 US dollars per barrel. Now it has dropped again, how much now? 70 US dollars so far, 76-77 US dollars on average. So it's still below the assumption of 100 US dollars per barrel on average. So our room is still wide open. So don't be afraid of the state budget," explained Purbaya.

For information, as of the end of February 2026, the realization of energy subsidy and compensation spending has reached Rp. 51.5 trillion or around 11.5 percent of this year's state budget target.

This figure increased by 382.5 percent compared to the same period last year.

This increase was mainly influenced by a surge in compensation spending which reached IDR 44.1 trillion, while subsidy spending was recorded at IDR 7.4 trillion.

Overall, the increase was triggered by fluctuations in the Indonesian crude oil price (ICP), weakening of the rupiah exchange rate, and increased consumption of fuel, LPG, and electricity.