March 20, 2026 | 11:46 am
TEMPO.CO, Jakarta - Indonesia will not raise the prices of subsidized fuel despite global oil prices exceeding US$100 per barrel, Finance Minister Purbaya Yudhi Sadewa affirmed. To avoid putting the burden on citizens, he said, the government will absorb the pressure of the energy price hikes through the State Budget.
"If we release it, people will panic like in other countries," said Purbaya at the Presidential Palace Complex, Jakarta on Thursday, March 19, 2026, as quoted from Antara.
Purbaya explained that the fuel subsidy mechanism has been designed within the annual framework, meaning the government has taken into account the swinging oil prices in the budget posture.
The government has also prepared various measures to maintain fiscal health, both through spending cuts and boosting state revenue.
"Our subsidy is calculated and planned for the entire year. Even with the current prices, we have already assumed the impact on the State Budget. We will take steps, either through expenditure reductions or revenue increases, to ensure the safety of our State Budget, and so far the calculations are still secure," said Purbaya.
Purbaya also emphasized the State Budget role as a shock absorber, which is crucial to ensure that the economic activities of the public continue as normal without a surge in costs. The government also considers how direct energy pressures on the public could potentially trigger panic, as seen in several other countries.
"So the public must understand that the State Budget is meant to absorb shocks like this, so people can still do their businesses and activities without excessive additional burdens. People sometimes overlook this," said Purbaya.
Read: Purbaya Denies Fuel Price Hike Speculation Ahead of Eid
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