APBN Kuat, Purbaya Emphasizes National Energy is Controlled

Minister of Finance Purbaya Yudhi Sadewa. (Photo: ANTARA)

JAKARTA - Finance Minister Purbaya Yudhi Sadewa emphasized that Indonesia has not faced an energy emergency, even though some countries have begun to take extreme steps due to global turmoil.

This statement was made in response to President Ferdinand Marcos Jr.'s decision to declare a national energy emergency in the Philippines, following concerns about energy supplies amid tensions in the Middle East.

According to him, from the fiscal side, the State Budget (APBN) of Indonesia is still strong enough to withstand pressure due to rising energy prices.

"Our state budget is still holding up. I will not change the state budget or existing subsidies to the point that the price of oil may be very high," he said in a media briefing, quoted on Thursday, March 26.

He added, assuming current energy prices, Indonesia's fiscal condition is still relatively safe until the end of the year.

"But at this time, until the end of the year at the current price, we are still holding the state budget. It depends on the decision of the leadership later. But I offer security," he said.

Purbaya emphasized that the status of energy emergency is not only determined by price increases, but by the availability of energy supply.

"The energy emergency is not in the APBN. The energy emergency is if the supply stops, that's what I'm afraid of. Not the price, the supply is gone," he explained.

He ensured that Indonesia's current energy supply was still safe so there was no reason to declare a state of emergency.

"Ini kan masih ada suplainya. Jadi kalau bilang darurat, nggak. Tapi kita musti siap-siap terus ke depan," tuturnya.

However, he added, the government must remain vigilant against the potential for repeated disruptions due to global dynamics.

In addition, Purbaya also highlighted Indonesia's economic structure which is not entirely dependent on government spending.

"Everything is calculated, and one more thing they forgot. Government spending is only about 10 percent of our GDP. The 90 percent must not be government spending, which means privatization," he said.