Business · Economy · 3 hrs ago
Indonesia steps up budget watch as oil prices reach US$114 a barrel
Indonesia is increasing its watch on the state budget as world oil prices have climbed as high as US$114 a barrel.
Finance Minister Suahasil Nazara said the oil price rise is also putting pressure on financial markets.
Yields on Indonesian government bonds have started to rise, which the government links to conditions abroad.
Oil prices had eased somewhat in the days before his remarks, but had previously reached US$113 and US$114 a barrel.
Foreign investment inflows remained strong, with about Rp126 trillion entering Indonesian financial instruments from January through October.
The inflows went into Bank Indonesia rupiah securities and government bonds, even as the stock market faced different conditions.
The government says it is preparing for budget risks from the oil price surge, but no specific measures were described.
Indonesia's Finance Minister Suahasil Nazara said the government is increasing its watch over the state budget as global oil prices have reached US$114 a barrel.
He said oil prices had recently eased somewhat after reaching US$113 to US$114 a barrel.
Suahasil said rising oil prices were also pushing up yields on government bonds.
Foreign investment inflows into Indonesian financial instruments reached about Rp126 trillion from January to the end of October.
He said state revenue and spending were on track at the end of October.
- Who
- Finance Minister Suahasil Nazara and the Indonesian government.
- What
- The government is increasing its watch over the state budget amid higher global oil prices.
- When
- Suahasil made the remarks on Tuesday, 3 November 2026.
- Where
- At the Presidential Palace complex in Jakarta.
- Why
- Oil prices reaching US$113 to US$114 a barrel have put pressure on financial markets and raised government bond yields.
This story does not have two clearly opposing sides.
Foreign capital inflows into Indonesian financial instruments reached about Rp126 trillion.
Suahasil said the government was increasing its watch over the state budget amid high oil prices and rising bond yields.
- Oil price peak cited
- US$114 a barrel
- Foreign capital inflows
- About Rp126 trillion from January to the end of October
- Government bond yields
- Rising
- State budget status
- Revenue and spending were on track at the end of October
2 sources
What people are saying
We see that yields in the government bond market are also starting to rise. This is due to effects from overseas, from the world.
This means we have to be prepared for the state budget.
Inflows are still around Rp126 trillion so far this year, from January to the end of October, and this is a good inflow.
The state budget at the end of October, with revenue and spending, is all on track.