Indonesia’s Economy Remains Resilient to Oil Price Shocks, Finance Minister Asserts

Jakarta – Indonesia’s economic fundamentals remain strong and capable of weathering fluctuations in global oil prices, according to Finance Minister Purbaya Yudhi Sadewa. The Minister’s remarks, delivered during a Plenary Cabinet Session on March 13, 2026, directly addressed concerns raised by some analysts predicting economic hardship due to rising oil costs.

Dismissing Recession Fears

Minister Sadewa refuted claims circulating on social media platforms like TikTok and YouTube that Indonesia was headed for economic ruin as a result of increased oil prices. He emphasized that these analyses often lacked a thorough examination of available data. “So we don’t demand to be afraid, Sir. So the analysts on TikTok, on YouTube who say we are destroyed, have never looked at the data at all,” Sadewa stated during the cabinet session as reported by CNBC Indonesia.

Historical Resilience

Sadewa presented historical data demonstrating Indonesia’s ability to maintain economic growth even during periods of high oil prices. He cited the 2007-2008 period, when Brent crude oil prices surged to over US$220 per barrel, yet Indonesia still achieved a growth rate of 4.6% due to prudent fiscal and monetary policies.

He further highlighted the economic stability maintained during the 2011 oil price surge (US$110-$120 per barrel) and throughout the COVID-19 pandemic, when oil prices again exceeded US$100 per barrel. In each instance, Indonesia’s economic indicators remained positive.

Policy and Presidential Response

The Finance Minister underscored the importance of appropriate economic policies in mitigating the impact of oil price volatility. He expressed confidence in the government’s ability to manage these fluctuations effectively.

President Prabowo Subianto, responding to Sadewa’s report, indicated a plan to address what he characterized as “unpatriotic” economic commentary that he believes is driven by external agendas and a desire to undermine the government’s stability efforts. According to CNBC Indonesia, Prabowo stated he has intelligence reports identifying those funding negative economic narratives.

Minister Sadewa’s Background

Purbaya Yudhi Sadewa has served as Indonesia’s Minister of Finance since September 8, 2025, under President Prabowo Subianto. Prior to this role, he served as the 4th Head of the Indonesia Deposit Insurance Corporation from September 3, 2020, to September 8, 2025. As noted by Wikipedia, Sadewa is an economist and engineer born in 1964.