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Indonesia Defends $12.3B Fuel Subsidy Amid Rising Oil Prices

4/1/2026

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Summary

Story summary

The Indonesian government is defending its US$12.3 billion fuel subsidy, about five percent of the 2026 budget.
It may need to adjust the subsidy to meet a legal requirement to keep the deficit under three percent of GDP.
The subsidy was based on US$70 per barrel, but prices have risen above US$100.
Indonesia has not experienced long fuel queues amid rising global oil prices linked to the Strait of Hormuz.

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Story summary

The Indonesian government is defending its US$12.3 billion fuel subsidy, about five percent of the 2026 budget.
It may need to adjust the subsidy to meet a legal requirement to keep the deficit under three percent of GDP.
The subsidy was based on US$70 per barrel, but prices have risen above US$100.
Indonesia has not experienced long fuel queues amid rising global oil prices linked to the Strait of Hormuz.