Jakarta. Finance Minister Purbaya Yudhi Sadewa said Wednesday that Indonesia’s fiscal conditions were still resilient enough to cushion the impact of the Iran war.

The government does not intend to change the state budget despite the conflict’s blow to crude oil prices. The Iran war will soon mark its fourth week since the US and Israel coordinated an attack on Tehran, further increasing fiscal pressures across the globe. Indonesia, however, remained upbeat that it did not have to modify its budget allocations.

“Our state budget can still withstand [the Iran war impact]. I will not change the budget or subsidies until the price reaches sky-high,” Purbaya told reporters in Jakarta.

He went on to say that Indonesia should be able to hold on at current prices, at least until the year-end. Changes in the energy spending allocation also require President Prabowo Subianto’s approval. Indonesia is also still far from an energy emergency, according to Purbaya, as the Philippines recently declared it had entered such a stage.

“We still have our energy supplies. I don’t think we have entered an emergency, but it is something that we have to brace ourselves for, especially if this continues to happen.”

The 2026 state budget sets the macroeconomic assumption for the Indonesian crude price at $70 a barrel. Trading Economics data showed that the global benchmark Brent crude had started to move below $100 per barrel.

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