Inp.polri.go.id - Jakarta. Minister of Finance Purbaya Yudhi Sadewa has indicated that the government may expand the 2026 stated Budget deficit beyond the statutory 3% cap to mitigate economic pressures caused by escalating Middle East tensions.

“As the President’s assistant, I will execute any directives regarding budget adjustments, particularly as we calculate the impact of rising oil prices which could increase the deficit by Rp6.8 trillion for every $1 increase in the Indonesian Crude Price,” Minister Purbaya said at the Ministry of Finance on Friday (13/2/2026).

The potential breach of the legal threshold, established by Law No. 17/2003, came as the conflict between Iran and the U.S.-Israel axis drives oil toward $92 per barrel, far exceeding the budget’s $70 assumption. 

Analysts suggest that without intervention, the deficit could reach 3.7% of GDP. Minister Purbaya maintained that Indonesia's fiscal position remains competitive compared to neighboring countries like Vietnam and Malaysia, asserting that the government is carefully studying feedback from global rating agencies Fitch and Moody's to ensure long-term fiscal stability while fostering national growth.

(mg/inp/pr/rs)