March 25, 2026 | 07:35 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa believes Indonesia remains shielded from an energy emergency despite the escalating conflict involving the US, Israel, and Iran.
To date, he has no plans to revise the 2026 State Budget (APBN) or current energy subsidy policies.
"Our APBN remains resilient. I will not change the budget or existing subsidies, even if oil prices soar," Purbaya stated in Jakarta on Wednesday.
The statement follows the Philippines' declaration of a national energy emergency on March 24, 2026, sparked by a fuel supply crisis triggered by Middle Eastern hostilities.
In response, the Finance Minister confirmed that Indonesia's fiscal position is robust enough to absorb the pressure of rising fuel costs.
Assuming oil prices remain relatively manageable, Purbaya maintains that no policy adjustments are necessary in the immediate future.
Reflecting on the situation in the Philippines, he noted that an energy emergency is not defined solely by price spikes, but by disruptions to energy supplies. In the Indonesian context, he ensured that supplies remained available.
"An energy emergency is not a budget issue. My concern is if the supply stops—not the price, but the absence of supply. Currently, supply is still flowing, so it cannot be called an emergency yet," he explained.
Furthermore, the State Treasurer stated that the government will continue to monitor global developments, particularly the conflict's impact on the energy supply chain. He emphasized the importance of staying vigilant without taking premature action.
"What I mean by an energy emergency is if the supply halts; that is my worry. It is not about the price, but the lack of supply. Since we still have supplies, it is not an emergency. However, we must be prepared for what lies ahead," Purbaya said.
Regarding the fuel subsidy policy, Purbaya confirmed there are no plans for changes. His office prefers to maintain policy stability while awaiting further developments.
"As far as I know, there have been no policy changes. I have said: Do not interfere with the budget yet. It is still too early," he explained.
In terms of macroeconomic assumptions, he revealed that the Indonesian Crude Price (ICP) currently sits around US$74 per barrel, slightly above the initial state budget assumption of US$70 per barrel.
Despite this increase, the discrepancy is considered to be within manageable limits.
"Yes, it is at US$74 per barrel as of now. So, it has exceeded the assumption by approximately US$4, hasn't it? That was what we calculated. If it increases significantly, we will recalculate the price," he added.
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