DPR's Budget Committee Reminds JK: Fuel Price Hike Risks Lowering Public Purchasing Power
Deputy Chairman of the House of Representatives' Budget Committee (Banggar), Wihadi Wiyanto, affirmed that the foundation and performance of the state budget remain strong to maintain economic stability amid the pressure from global energy price increases. This statement was in response to former Vice President Jusuf Kalla's suggestion for the government to raise fuel prices, which according to JK could widen the deficit and debt. Wihadi stated that the state budget functions as a stabilization instrument to absorb external shocks so they don't directly impact the public.
Fundamentally, Indonesia's economy is maintained with controlled inflation at 3.48 percent in March 2026, economic growth in Q4 2025 reaching 5.39 percent, and the manufacturing PMI in the expansion zone. Wihadi emphasized that the state budget is in healthy condition, with state revenue up to March 2026 reaching Rp574.9 trillion or growing 10.5 percent year-on-year, along with a safe deficit and debt ratio.
Furthermore, this legislator from the Gerindra Party revealed that the government has explained steps for refocusing the budget through efficiency in non-priority spending to increase energy subsidies. This move is considered crucial to avoid a domino effect on the national economy, because rising energy prices could trigger inflation, weaken purchasing power, and risk slowing down the currently favorable economic growth momentum.
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