RADAR TULUNGAGUNG – Indonesia subsidized fuel prices will remain unchanged for now even as global oil prices surge sharply due to geopolitical tensions in the Middle East.

Finance Minister Purbaya Yudhi Sadewa confirmed that the government has no plan to raise subsidized fuel prices. He stressed that the country’s fiscal condition remains strong enough to absorb the impact of global energy volatility.

Purbaya delivered the statement after attending an event at Tanah Abang Market in Jakarta on Monday, March 9, 2026. He said the government continues to observe developments in global energy markets before taking any policy action.

“Until now, we have not taken any policy to change fuel prices. That means we have no plan to increase subsidized fuel prices,” he said.

The government hopes the statement will reassure the public that Indonesia subsidized fuel prices will remain stable despite rising crude oil prices worldwide.

Government Relies on Strong State Budget

The Finance Ministry believes the state budget still provides enough fiscal space to maintain Indonesia subsidized fuel prices.

Purbaya explained that the government designed the 2026 State Budget (APBN) to withstand fluctuations in global energy prices. According to him, the current fiscal capacity allows the government to maintain fuel subsidies without disrupting public finances.

“We can ensure that the subsidy program will not face disruption,” he said.

The government continues to evaluate global oil price movements while maintaining a cautious approach to fiscal management.

Officials want to ensure that any future energy policy aligns with economic stability and long-term budget sustainability.

For now, authorities see no urgent reason to adjust domestic fuel prices.

Middle East Tensions Push Oil Prices Higher

Rising geopolitical tensions in the Middle East have driven the recent surge in global oil prices.

The growing conflict involving the United States, Israel, and Iran has raised concerns about potential disruptions to global oil supply.

Energy markets reacted quickly to the situation as traders anticipated possible supply shortages.

Several oil producers in the region have already started reducing production levels. That move increased concerns about tighter supply in global markets.

Reuters reported that fears over shipping disruptions in the Strait of Hormuz also pushed oil prices higher.

The strategic waterway plays a crucial role in global energy trade because it carries a significant share of the world’s oil shipments.

Any disruption in the strait could significantly affect international oil supply.

As of Monday, March 9, 2026, at 00:15 WIB, Brent crude for May 2026 delivery recorded a sharp increase.

The benchmark price jumped by $18.35, or around 19.8 percent, reaching $111.04 per barrel.

This surge marked the highest oil price level since July 2022.

Government Closely Watches Global Energy Trends

Despite the recent spike, the government has urged the public not to assume that global oil prices will stay high for a long time.

Purbaya emphasized that energy markets often experience rapid fluctuations.

“Do not rush to conclude that oil prices will stay above $100 per barrel,” he said.

Some analysts have predicted that oil prices could even climb toward $150 per barrel. However, Purbaya believes the market situation remains uncertain.

Therefore, the government will continue monitoring global energy developments before making any major policy decision.

Authorities will also adjust the oil price assumptions in the state budget if necessary.

This approach allows policymakers to respond more effectively to changes in global markets.

Domestic Economy Continues to Expand

Despite rising oil prices, Indonesia’s domestic economy still shows strong growth.

Purbaya said economic activity across the country continues to expand, and he has not seen any major disruption caused by the recent oil price surge.

“At the moment, the economy is still expanding. I have not seen any disturbance in domestic economic activity due to rising prices,” he said.

However, he acknowledged that the current surge has occurred only recently. Because of that, the government will continue evaluating its long-term impact.

For now, maintaining Indonesia subsidized fuel prices remains a key priority for the government.

Officials believe stable fuel prices will help households and businesses manage transportation and operational costs.

By maintaining energy affordability, the government aims to support economic stability while global energy markets remain uncertain.