JAKARTA: Indonesia on Tuesday (Mar 31) announced fuel rations and mandated work from home for civil servants, as it seeks to conserve energy stocks amid global price hikes due to the Middle East war.
“To ensure fuel distribution, the government will regulate purchases … with a reasonable limit of 50 litres per vehicle” per day for private consumers, said Airlangga Hartarto, the coordinating minister for economic affairs.
Speaking at a virtual news conference from Seoul, he also said that civil servants will work from home every Friday, part of the government’s efforts to save energy.
The government said earlier on Tuesday it would not increase the price of fuel, which is heavily subsidised in Indonesia.
The Southeast Asian archipelago is an oil producer but nevertheless a net importer.
The government has doggedly defended the subsidy, which at US$12.3 billion represents about 5 per cent of the total annual budget for 2026.
Observers say the government’s hand may eventually be forced, given that Indonesia is required by law to keep its fiscal deficit under 3 per cent of gross domestic product.
The 2026 fuel subsidy calculation was premised on a global oil price of US$70 per barrel, but prices have since topped US$100.
Airlangga said that “the national economic condition (remains) stable with strong fundamentals.
“National fuel stocks are safe and fiscal stability is maintained,” he said.
Bahlil Lahadalia, the energy minister, said: “We need the support and cooperation of the public. We need to purchase fuel reasonably and wisely.”
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