TEMPO.CO, Jakarta – Finance Minister Purbaya Yudhi Sadewa said Indonesia will keep prices of subsidized fuel unchanged through the end of 2026, despite rising global oil prices triggered by escalating tensions in the Middle East.
Purbaya said the government still has enough fiscal room to maintain fuel subsidies after reallocating spending from various ministries and state agencies. He estimated the 2026 state budget deficit would remain at around 2.9 percent of gross domestic product, similar to the previous year.
“As long as supply is available, we still have a financial cushion of around Rp490 trillion in unspent budget funds, and if necessary, those funds can still be used,” he said at a press conference at the Coordinating Ministry for Economic Affairs in Jakarta on Monday, April 6, 2026.
He said the state budget would still be able to absorb the subsidy burden even if crude oil prices average around US$100 per barrel through the end of the year.
However, Purbaya said he does not expect oil prices to remain above that level for long, citing political developments in the United States as a factor that could ease pressure on global energy markets.
He also sought to reassure the public over the government’s fiscal capacity.
“There is no need to speculate that we are running out of money, because we still have substantial funds. Our finances are sufficient,” he said.
Global oil prices have surged since conflict involving the United States, Israel, and Iran escalated on February 28, 2026, pushing crude above US$100 per barrel — well above the US$70 per barrel assumption used in Indonesia’s 2026 state budget.
The spike was also driven by Iran’s closure of the Strait of Hormuz, a key global shipping route for oil and gas.
While the government said there are no plans to raise prices for subsidized fuels such as Pertalite and Solar, it is considering tighter purchase restrictions.
Under the proposal, private four-wheeled vehicles would be limited to buying a maximum of 50 liters of subsidized fuel per day.
Read: Purbaya Claims March Inflation Lower Than BPS Data Suggests
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