TEMPO.CO, Jakarta - Purbaya Yudhi Sadewa has repeatedly sought to reassure the public that the State Budget remains secure. On several occasions, the Finance Minister said the government still has room to deploy a "buffer" to cope with global economic turbulence stemming from the Iran-Israel war, backed by the United States. "People do not need to worry about an uncontrolled deficit or a fiscal breakdown," he said on Tuesday, March 31, 2026. "We have calculated it until the end of the year," he added.
The following day, Wednesday, April 1, he delivered a similar message to the media at Wisma Danantara, South Jakarta. He said fiscal conditions remain strong, supported by a "buffer" in the form of a budget surplus balance amounting to Rp420 trillion (about US$24.7 billion). That figure, he said, is sufficient to safeguard fiscal stability. "Our fiscal space remains wide open," he said.
In his calculations, even if average crude oil prices exceed US$100 per barrel, the budget deficit will still be kept below 3 percent of gross domestic product (GDP). "We have calculated it, the deficit is 2.9 percent, so there is no problem," he said.
Oil price volatility became a central topic in a series of government meetings throughout the past month. At a plenary cabinet session at the State Palace in Central Jakarta in mid-March, Coordinating Minister for the Economy Airlangga Hartarto said that with a weakening rupiah and soaring global oil prices, it would be difficult to prevent the State Budget deficit from widening.
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