Minister of Finance Purbaya ensures that subsidized fuel will not increase, the APBN is claimed to be safe

Minister of Finance Purbaya Yudhi Sadewa/PHOTO: Teddy Kurniawan-VOI

JAKARTA - Finance Minister Purbaya Yudhi Sadewa has confirmed that the government will not raise the price of subsidized fuel even though world oil prices have soared. In the midst of Brent prices that are said to have touched 116 US dollars per barrel, he emphasized that the state budget is still able to withstand shocks.

At the Presidential Palace complex in Jakarta, Thursday, March 19, Purbaya said the budget condition was still safe. One of the steps prepared was savings in spending. According to the Minister of Finance, a 10 percent cut can still be made without problems.

"10 percent of the cut has no problem," said Purbaya.

He added that the details of the steps that the government would take would be announced soon. What is certain is that the state budget deficit will not be allowed to exceed 3 percent of gross domestic product.

"Aman is, I won't penetrate 3 percent of GDP," he said.

When asked whether official travel would be cut again, Purbaya admitted that it had been discussed in a previous meeting. However, the final decision has not been made.

Purbaya also revealed the government's rough calculation if the average oil price rose to 100 US dollars per barrel. According to him, if the government just stands still, fixed spending and income are not increased, the deficit could widen to 3.6 percent. Therefore, the government has prepared a series of steps to keep the 3 percent limit.

In addition to savings, the government will also rely on additional revenue, including windfall profits. With this combination, Purbaya believes that oil price pressure can still be contained.

Most emphatically, he ensured that the burden would not be thrown to the public through the increase in subsidized fuel.

"No," Purbaya replied when asked about the possibility of the subsidized fuel price rising.