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Indonesia Struggles with Rising Oil Prices and Budget Cuts

3/6/2026

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Summary

Story summary

Indonesia faces fiscal challenges as oil prices rise amid the US-Israel conflict.
The government allocated 210.1 trillion rupiah for energy subsidies this year, up 14.5%.
Finance Minister Purbaya Yudhi Sadewa said the country will adjust its budget to keep the deficit below 3% of GDP.
Sadewa plans to scale back expenditures, including the free meals program, to maintain fiscal discipline while aiming for 8% GDP growth.

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Story summary

Indonesia faces fiscal challenges as oil prices rise amid the US-Israel conflict.
The government allocated 210.1 trillion rupiah for energy subsidies this year, up 14.5%.
Finance Minister Purbaya Yudhi Sadewa said the country will adjust its budget to keep the deficit below 3% of GDP.
Sadewa plans to scale back expenditures, including the free meals program, to maintain fiscal discipline while aiming for 8% GDP growth.