Jakarta –
Finance Minister Purbaya Yudhi Sadewa denied the narrative that Indonesia’s economy would be destroyed when oil prices soared. According to Purbaya, analysts often convey this via TikTok and YouTube.
Purbaya criticized the analysis and thought they did not look at the data thoroughly. Because based on experience, the Indonesian economy does not always suffer when oil prices rise sharply.
In his presentation to President Prabowo Subianto, Purbaya explained that concerns about the spike in world oil prices had actually arisen several times. Therefore he asked the public not to be afraid.
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“So we don’t need to be afraid, Sir. So the analysts on TikTok, on YouTube who say we are destroyed, have never looked at the data at all,” said Purbaya at the Plenary Cabinet Session at the State Palace, Friday (13/3/2026).
Purbaya showed data comparing the movement of Brent oil prices with Indonesia’s economic conditions. Purbaya gave the example of the 2007-2008 period when the price of Brent oil soared very high to more than US$ 220 per barrel.
“But with the right policies, fiscal and monetary at that time, we could still grow 4.6%. So we were careful enough to control this,” added Purbaya.
Purbaya also highlighted the next period of rising oil prices in 2011 when Brent prices were in the range of US$ 110 to US$ 120 per barrel. According to him, during this period indicators of domestic economic conditions also showed a positive trend.
A similar experience, said Purbaya, also occurred during the COVID-19 pandemic. When oil prices rose again to above US$ 100 per barrel afterwards, domestic economic conditions remained stable and showed an improving trend.
For this reason, Purbaya believes that there is no need to worry too much about fluctuations in world oil prices as long as economic policies are implemented appropriately.
“This means that if we have the right policies, monetary and fiscal and your policies will be, even if the global economy of oil prices fluctuates, we will have ways or experience to control the impact on the economy. So we don’t need to be afraid, sir,” said Purbaya.
(ily/hns)
