Indonesia’s Finance Minister Purbaya Yudhi Sadewa announced on Tuesday that key economic policies, including the decision to keep subsidized fuel prices unchanged through 2026, are being implemented under direct instructions from the President. The minister underscored these decisions are the product of coordinated governmental action, rather than individual or sectoral initiatives, aiming to reassure the public regarding fiscal stability.
Speaking in Jakarta, Minister Sadewa clarified that ministries operate in alignment with presidential directives, seeking to demystify the national decision-making process. He stressed that while the government often presents various policy options, the final authority for such decisions rests with the President.
According to Sadewa, the President meticulously evaluates the economic impact of each policy, with particular attention to its effects on households. The government regularly conducts simulations based on different global oil price scenarios, such as crude at $80, $90, or $100 per barrel, to ensure policies remain targeted and sustainable. This analytical approach helps policymakers anticipate potential risks and determine appropriate responses.
Despite heightened global uncertainty, Minister Sadewa urged the public to remain calm, citing Indonesia’s relatively strong fiscal position. He affirmed that state revenues and existing fiscal buffers are sufficient to sustain subsidy programs and maintain price stability. A key component of this resilience is the Budget Surplus (SAL), which currently stands at Rp420 trillion.
Sadewa indicated that the government has already modeled a range of possible outcomes, including scenarios of higher oil prices. He also pointed to potential additional revenue sources, such as gains from policy measures introduced by the energy ministry, that have not yet been factored into current projections. Overall, the government expressed confidence in its ability to manage risks while sustaining the nation’s economic stability.
Source: Original
