Sadewa made the remarks at the Presidential Palace complex here on Tuesday, in response to sharp fluctuations in global oil prices over the past three days, and their potential impact on fuel prices ahead of Eid al-Fitr in Indonesia.
“We are carefully observing whether it rises or falls. If it rises for several days or weeks, then we can anticipate a sustained increase, but it might rise and suddenly fall again,” he said.
He explained that the government will first determine the price trend before making adjustments to the state budget (APBN).
He emphasized that the recent oil price surge is considered recent and does not yet justify changes to budget assumptions, including energy subsidies.
“If the price drops later, we would have to change it again. (Adjusting the assumption of) APBN requires more caution than responding to daily stock movements,” he said.
Currently, the fuel subsidy in the APBN is based on an average price of $70 per barrel for the full fiscal year.
“The price has only risen for a few days. Our subsidy assumption is an annual average of $70 per barrel,” he noted.
He added that the government will not react immediately to short-term price swings, as fiscal policy changes require more deliberate consideration than daily market responses.
“First, we need to understand the direction clearly. Once it’s clear, we can invite all parties to take steps,” the minister said, assuring that the government’s fiscal condition remains strong to withstand external pressures, including rising global energy prices.
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Translator: Andi, Kenzu
Editor: Azis Kurmala
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