JAKARTA - Minister of Finance (Menkeu), Purbaya Yudhi Sadewa said the price of subsidized fuel oil (BBM) will rise if the world oil price continues to soar and exceeds the capacity of the State Budget (APBN).
"If the budget is not very strong, there is no other way, we share with the public a part of it. That is, there is an increase in fuel," said Purbaya as reported by ANTARA, Friday, March 7.
However, he underlined that the increase would only occur if the state budget was no longer able to keep up with the pressure of world oil prices.
According to Purbaya, the results of the Ministry of Finance's calculations show that the state budget deficit could reach 3.7 percent of gross domestic product (GDP) if the oil price remains at the level of 92 US dollars per barrel throughout the year and there is no intervention from the government.
However, Purbaya ensured that he would take mitigation steps so that the pressure on world oil prices would not widen the state budget deficit.
Apart from adjusting fuel prices, another option available is reallocation of state spending. A number of budget programs that have a low level of urgency can be shifted to meet fiscal health needs. Meanwhile, spending that has a direct impact on the community will not be shifted and will remain a priority for spending.
He gave an example of a program that still has budget reallocation space is the Free Nutritious Meal (MBG). The budget shift does not occur in the core function of the program in providing food, but rather in supporting activities, such as providing motor vehicles for the Nutrition Fulfillment Service Unit (SPPG).
"MBG is a good program, but we want to prevent if there is spending that does not directly support food, for example buying a motorcycle," said the Minister of Finance.
Purbaya said Indonesia had previously faced greater pressure on world oil prices, with a record oil price reaching around US$150 per barrel. The national economy was still able to survive through the pressure.
Purbaya is optimistic that this time the oil price spike phase can also be passed. "We used to go through a situation where the oil price was up to 150 US dollars per barrel. Did it fall economically? It slowed down a bit, but it didn't fall. So, we have experience," he said.
World oil prices have soared due to the Middle East conflict caused by the United States-Israel war with Iran.
Brent rose 4.93 percent to $85.41 a barrel, while US WTI jumped 8.51 percent to $81.01 a barrel.
This price is higher when compared to the average oil price in January 2026, where the Brent type (ICE) is 64 US dollars per barrel, and US WTI is at 57.87 US dollars per barrel.
However, the Ministry of Energy and Mineral Resources (ESDM) guarantees that subsidized fuel prices will not rise and stocks are still safe amid the dynamics of the Middle East conflict, especially ahead of Eid al-Fitr.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
