JAKARTA - Minister of Finance Purbaya Yudhi Sadewa confirmed that the government does not plan to raise the price of subsidized fuel oil (BBM) until the end of 2026.
Purbaya made the statement when responding to a question from the Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun, during a working meeting on Monday, April 6.
Misbakhun questioned the government's readiness if the world oil price was in the range of US$80 to US$100 per barrel.
"I want to make sure again that the exercise at the price of 80 US dollars, 90 US dollars, and 100 US dollars, the country is ready, right?" said Misbakhun in a working meeting with Commission XI of the Indonesian House of Representatives, Monday, April 6.
In response to this, Purbaya explained that the government had used an oil price assumption of up to 100 US dollars per barrel in previous calculations.
"What was announced yesterday was based on the assumption of (crude oil prices) 100 US dollars (per barrel). So we are ready if we get there. Until the end of the year," he said.
He also added that various scenarios have been calculated, including the possibility of fluctuations in the world crude oil price reaching an average of 100 US dollars per barrel by the end of the year.
"We are ready not to raise subsidized fuel until the end of the year with the assumption that the average oil price of 100 US dollars per barrel until the end of the year has been calculated," he said.
Purbaya dismissed the notion that the state budget would quickly be depleted due to the spike in oil prices.
He also denied the issue of rising fuel prices in July and urged the public not to worry or overreact.
"So (BBM) that is subsidized until the end of the year is safe. People outside don't have to fuss, don't have to be afraid, we've counted," he said.
According to him, the government has sufficient fiscal capacity to withstand the impact of rising global oil prices, which are triggered by the conflict between the United States, Israel, and Iran.
In addition, Purbaya said that the 2026 State Budget still has a reserve in the form of a Budget Surplus Balance (SAL) of IDR 420 trillion, and this fund can be used as a cushion if the oil price experiences a significant and difficult to control spike.
"This is a cushion in itself if needed. If the price of oil rises very high, for example, it is not under control," he explained.
Purbaya also explained that with this assumption, the budget deficit could still be maintained at around 2.92 percent of Gross Domestic Product (GDP).
"We have calculated the assumption of the world oil price of 100 US dollars (per barrel) on average throughout 2026 and with certain exercises [deficit] the budget can be pressed at 2.92 percent of GDP. So, throughout this year with an average price of 100 US dollars (per barrel) is safe," he said.
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