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Indonesia Faces Budget Crisis Amid Soaring Oil Prices

3/20/2026

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Summary

Story summary

Rising global oil prices above $100 per barrel strain Indonesia's fuel subsidy budget of 25.1 trillion rupiah.
Experts warn the MBG meals program, costing 335 trillion rupiah and 11% of the budget, may be reconsidered.
Economists advise prioritizing energy subsidies to curb inflation and prevent downturn.
Some argue MBG should scale back due to limited GDP impact, while others defend its role in preserving purchasing power.

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Story summary

Rising global oil prices above $100 per barrel strain Indonesia's fuel subsidy budget of 25.1 trillion rupiah.
Experts warn the MBG meals program, costing 335 trillion rupiah and 11% of the budget, may be reconsidered.
Economists advise prioritizing energy subsidies to curb inflation and prevent downturn.
Some argue MBG should scale back due to limited GDP impact, while others defend its role in preserving purchasing power.