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Indonesia Weighs Subsidy Cuts Amid Rising Oil Prices

3/17/2026

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Story summary
  • Indonesia faces limited options to address rising oil prices tied to the Middle East conflict.
  • President Prabowo Subianto's government may need to rethink energy subsidies and the school meals program.
  • Analysts say cutting fuel subsidies could save up to 100 trillion rupiah.
  • Finance Minister Purbaya Yudhi Sadewa warned that oil prices above US$92 per barrel could push the deficit to 3.6% of GDP.
  • Past price hikes have led to unrest.