Indonesia’s government has expressed confidence in its fiscal resilience despite a recent surge in global oil prices. Finance Minister Purbaya Yudhi Sadewa stated that although higher oil prices may increase the burden of energy subsidies, the country’s fiscal position remains stable and manageable. The government continues to closely monitor market developments while maintaining its commitment to sound fiscal management.

Indonesia’s 2026 state budget allocates around IDR 381.3 trillion (about USD 22.5 billion) for energy subsidies to support affordable fuel and electricity. The budget was originally calculated based on an oil price assumption of USD 70 per barrel and an exchange rate of IDR 16,500 per USD. While global crude prices recently surpassed USD 100 per barrel due to geopolitical tensions, the government indicated that policy adjustments would only be considered after monitoring the situation further, ensuring fiscal stability remains intact.
Source:
https://jakartaglobe.id/business/indonesia-downplays-oil-price-spike-as-minister-says-fiscal-risks-manageable