Indonesia's State Budget Strong Enough to Withstand Global Crisis, Says Minister

TEMPO.CO, Jakarta - Indonesian Finance Minister Purbaya Yudhi Sadewa confirmed that the country's State Budget (APBN) remains strong enough to weather a potential prolonged global crisis, including the impact of escalation in the Middle East.

After meeting with President Prabowo Subianto at the Presidential Palace Complex in Jakarta on Tuesday evening (March 3), Purbaya stated that the government had discussed budget resilience scenarios if the crisis persists longer than expected.

He stated that this estimate is based on a preliminary analysis and the current fiscal conditions, which are considered to be in a good category.

"We discussed, among other things, whether the budget will be resilient if a crisis like this continues, and what the budget will look like. Our current analysis shows that it's still quite sound, so there are no problems," Purbaya said.

He explained that one of the factors supporting Indonesia's good fiscal condition is state revenue performance, which showed significant improvement at the beginning of the year.

Tax and customs revenues from January to February 2026 were recorded to have grown by around 30 percent.

"That's a very significant figure. It means there has been significant improvement in the economy and people's behavior, taxes, and customs," he explained.

Regarding national economic resilience amid the escalation of tensions between the United States and Iran, Purbaya stated that the government had conducted simulations of various oil price scenarios for the current fiscal year.

According to him, the increase in oil prices at a certain level can still be absorbed by the state budget. However, if the spike is extreme, the Indonesian government will recalculate to adjust fiscal policy.

"So, if the oil price increase is too high, we can still absorb it. But if it's extreme, we will recalculate," Purbaya added.

Read: Iran War Risks Widening Indonesia State Budget Deficit, Indef Warns

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